The positive XRP sentiment has recently dropped to its lowest level in the last three months, as reported by analyst Ananda Banerjee on December 23. This metric, which measures optimism on social networks, usually precedes significant upward movements within the digital asset market. The fatigue of retail investors seems to have reached a point of technical capitulation during this week.
Currently, the XRP price has retreated by 9% over the last thirty days, generating a climate of generalized apathy. History suggests that these drops in enthusiasm usually anticipate rebounds of between 14% and 17% quite quickly. In previous episodes observed during October and November, the market reacted strongly after reaching similar levels of social negativity. The crowd’s lack of interest acts as a catalyst for the start of new sustainable upward trends.
On the other hand, Glassnode data reveals a significant purging of so-called “weak hands” or short-term holders. This group, which held nearly 3% of the total supply, has reduced its share to just 1.18% at this time. The exit of speculators reduces the immediate selling pressure on the token’s valuation across various trading platforms. Likewise, this capital rotation allows high-conviction investors to take control of the exchange order book. The market appears to be removing excess leverage before looking for new annual highs in the coming days.
Long-term holders strengthen the current market structure
Furthermore, while retail participants abandon their positions, institutional and veteran investors show remarkable resilience against the current market volatility. Selling pressure from large holders has decreased by more than 50% during the latest trading sessions. In this way, the daily distribution of tokens went from 216 million to just 103 million units right now. Experienced holders are opting for strategic patience instead of liquidating their assets amid the prevailing market uncertainty. This trend is often the prelude to a very powerful silent accumulation phase for the most relevant cryptocurrencies.
Consequently, the reduction in the selling pace indicates that the main support at 1.77 dollars is being successfully defended. If this level stays firm, the path toward the targets of 2.03 and 2.17 dollars will remain open. The strength of Ripple’s technical market fundamentals is once again attracting those seeking real long-term value. Therefore, technical analysts are closely monitoring any signs of reversal in the trading volume indicators. The exhaustion of sellers is a clear signal that the market floor could be very close indeed.
Can market apathy push the price toward the 2.17 dollar level?
It is also essential to observe that the recovery of social optimism is usually the last step before a price explosion. The return of institutional risk appetite could catalyze the movement expected by the bulls during this current month. However, a break below the critical support would immediately invalidate the sentiment-based recovery thesis for the asset. Monitoring key resistance levels will be the primary task for traders looking for safe market entry points. Many traders are confident that the current pessimism is simply a disguised buying opportunity for everyone.
Finally, the current scenario for XRP proves that mass psychology remains a very useful counter-reference indicator for operational success. The success of the next movements will depend on the buyers’ ability to absorb the remaining retail supply. Although the outlook seems bleak on social media, internal data suggests a much more robust structural health today. Investor patience will be put to the test while the market decides its final direction for the year-end close. In this way, the collapse in sentiment could be the signal the bulls were waiting for.
