XRP Retail Crowd Turns Pessimistic, But Smart Money Sees a Buying Opportunity

XRP Retail Traders Turn Pessimistic — A Classic Contrarian Setup Emerges

Retail sentiment around XRP has turned sharply negative, marking the most bearish stance since the panic sparked by Trump’s tariff announcements six months ago — a pattern that has historically preceded rebounds.

Fresh data from Santiment shows the token’s bullish-to-bearish commentary ratio dipped below 1.0 twice this week — to 0.74 on Oct. 4 and 0.86 on Oct. 6 — suggesting that fear-driven narratives are dominating retail discussions.

This level of pessimism hasn’t been seen since April, when similar anxiety signaled the formation of a local bottom. Back then, prices recovered steadily even as sentiment remained cautious, underscoring how negative retail sentiment often serves as a buy signal.

Santiment summarized the dynamic simply: “When retail traders lean too far in one direction, markets tend to move the other way.”

For comparison, on Sept. 17, XRP’s bullish-to-bearish ratio surged to 3.21, reflecting peak optimism — and that same day, the token topped out above $3.14 before retracing.

The contrast between euphoric peaks and fearful troughs reinforces a familiar cycle: retail traders chase highs and fear lows, while institutions and disciplined investors often take the other side.

Currently, XRP’s downturn in retail sentiment could signal capitulation rather than continuation, setting up the groundwork for a potential rebound — if demand steps in to validate the contrarian signal.