XRP's social sentiment hit its lowest level since July after the price fell from $1.32 to $1.15 and broke a key support level. Traders face a market in fear, while Ripple CEO Brad Garlinghouse's comments about XRP's role keep some optimism alive.
The price of XRP fell from $1.32 to $1.15 on the 4-hour chart, breaking below a key support level at $1.24 amid a broader market sell-off. Social sentiment for the altcoin dropped with it.
Sentiment data hit its lowest level since July, with total negative sentiment at 5.8435. The ratio of positive to negative sentiment was 0.65426, reflecting a growing bearish dominance. The price is still holding above $1.15.
Liquidations and fading derivatives interest
The breakdown of $1.24 triggered long liquidations and stop losses totaling more than $10.23 million, according to CoinGlass. Meanwhile, XRP's open interest also moved lower. It fell from $3.78 billion to $2.77 billion.
Stalling ETF inflows added pressure. This month, the XRP ETFs had only one day of outflows, and the rest of the days were inactive.
The wider market looks cautious too. The Fear and Greed Index is at 32, which suggests the shift in social sentiment might extend beyond XRP.
Garlinghouse's North Star and the $0.98 level
Some signs point the other way. Buying volume exceeded that of sellers, hinting at a breakdown in selling pressure.
Garlinghouse has repeatedly described XRP and the XRP Ledger as Ripple's "North Star," the company's core purpose and guiding principle. He answered a question about whether the RLUSD stablecoin shifts focus away from XRP, and said RLUSD is merely competing with other stablecoins.
On the chart, $1.15 was the last lower high before a market structure shift turned XRP bullish, so the decline could be a retest. If XRP falls below that level, the next demand zone is $0.98.
Source: AMBCrypto
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