XRP Sentiment Hits Extreme Fear as TD Sequential Flashes Early Reversal Signal

XRP Sentiment Hits Extreme Fear as TD Sequential Flashes Early Reversal SignalSocial sentiment for XRP has collapsed to extreme fear levels, historically preceding short-term rebounds.Updated Dec 7, 2025, 1:05 pm Published Dec 7, 2025, 12:47 pm

(CoinDesk Data)

Technical indicators across multiple timeframes point to structural weakness despite brief breakout attempts above $2.05 resistance during overnight trading.

News Background

• XRP continues to face pressure as its weekly performance deteriorates to -7.4%, adding to the multi-session downtrend dominating early December.
• Despite persistent weakness in price, institutional demand remains strong via US spot XRP ETFs, which have attracted $906 million in net inflows since launch — with no outflow days recorded.
• Meanwhile, social sentiment has collapsed to extreme fear readings matching October lows, with sentiment reporting the highest level of bearish commentary in over five weeks.
• Historically, such extremes preceded short-term rebounds, including the November 21 recovery.
• On-chain data shows mixed positioning: 6–12 month holders reduced exposure significantly, falling from 26.18% to 21.65%, while long-term ETF-driven demand continues to accumulate quietly in the background.

Technical Analysis

• XRP’s attempt to break higher was initially successful, with price pushing through $2.05 on a 68% above-average volume surge at 03:00. The breakout produced a sharp rally to $2.07, but the move lacked follow-through. Diminishing volume into the retrace revealed fading momentum, and sellers quickly regained control.
• A persistent descending channel has now formed on the 60-minute chart, featuring successive lower highs and tightening price compression. This structure reflects an orderly trend-driven decline rather than a panic liquidation.
• Each bounce has been met with distribution, particularly near $2.04–$2.05 — a zone that now doubles as immediate resistance.
  Momentum oscillators trend downward across intraday timeframes, while the weekly TD Sequential indicator quietly flashes a potential reversal signal.
• This creates an environment of short-term weakness paired with early-stage long-term stabilization signals.

Price Action Summary

• XRP traded within a $0.0563 range (2.8%), moving between $2.02 and $2.07 before closing near $2.032.
• The breakout to $2.07 was driven by a 44.99M volume spike (68% above SMA), but the rally fully retraced as volume decayed.
• The 60-minute structure shows XRP declining from $2,040 to a support test at $2,029, with 1.08M volume during the low — clear evidence of institutional distribution rather than opportunistic buying.
• XRP now consolidates around $2,030, where holding this pivot becomes critical to avoid deeper testing of the $2,020–$2,025 zone.

What Traders Should Know

• XRP’s short-term trajectory remains fragile as technical forces overpower otherwise supportive fundamentals like ETF inflows and long-term accumulation.
• A reclaim of $2.035 is required to restore intraday momentum, while a clean break back above $2.05 would be needed to invalidate the descending channel.
• If $2.030 gives way, traders should anticipate a retest of $2.020–$2.025, with psychological support at $2.00 serving as the final line before wider downside opens.
• Sentiment is deeply negative, which historically has aligned with early reversal setups, but until a technical trigger emerges, the prevailing trend remains downward.

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