XRP has stalled after a period of price gains and frenzy, creating a wave of fear, uncertainty and doubt (FUD) around the token.
While investors may be considering caution around the fourth largest asset by market cap, analysts on 7 October said the FUD is actually a sign of an impending breakout.
The analysts at Santiment added that as with previous cycles, the market moves in opposite direction to the predominant sentiment.
Swimming against the tide
XRP’s price has stagnated recently despite the explosive move of Bitcoin since October began.
Ethereum and BNB which are just above it have also made impressive gains, but the token seems to be oscillating between $3 and $2.9.
This narrow range of movement seems to have resulted in the FUD that is seen mostly among retail investors.
According to Santiment, this is the highest level of FUD XRP has seen since U.S. president Donald Trump announced his tariffs six months ago.
The market intelligence platform observed that there have been more bearish comments than bullish ones in the last few days, which contrary to popular opinion is a good buy signal.
Santiment’s perspective is derived from a long-standing principle by veteran investor Warren Buffet who said ”be fearful when others are greedy and to be greedy only when others are fearful”, meaning the time of peak FUD is the time to buy in.
What’s next?
While there’s a lot of FUD from retail concerning XRP, some analysts agree with Santiment that the token is set for a breakout.
One analyst says it is ready for a breakout that could take the price to $10.
While this may seem overly ambitious, this may not be far from reality as whales have reportedly been buying the token, encouraged by the looming news of an ETF approval which is expected later this month.
What do you think?
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