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There is now overwhelming bearishness among XRP traders despite the fact that the token recently experienced a substantial rally.
Santiment data shows that XRP recently logged its lowest reading of positive-to-negative comments in roughly a month. The ratio now stands at 0.67.
Apart from X, Santiment also tracks negative comments across Telegram, Reddit, and other cryptocurrency communities. Pessimism is currently dominating the XRP conversation.
Just like the XRP price, XRP sentiment tends to experience significant volatility, and this has been the case over the past several months. Recently, there were brief bursts of enthusiasm that coincided with the September rally. At the beginning of October, however, XRP sentiment plunged toward the bottom of its recent range.
As reported by U.Today, some XRP investors are dismayed by the fact that the token price remains stagnant despite the XRP Ledger recently scoring a huge institutional adoption win. Some commentators can't wrap their heads around the fact that these major developments seemingly remain unnoticed by market participants.
Ethereum sentiment also takes a hit
Ethereum's bullish-to-bearish comment ratio has dropped to 0.89. According to Santiment, this is the weakest reading since June 7, but the situation is not as dire as in the case of XRP.
With that being said, it should once again be noted that such readings can change quickly.
A potential opportunity
Santiment claims that such negative sentiment can be treated as a contrarian signal (but with some caution).
The reasoning is fairly straightforward: given that social media is full of traders expecting another drop. A substantial portion of those who wanted to sell may already have done so. Hence, there is a potential for a move in the opposite direction.
Still, extreme bearishness can become even more extreme (and even more extreme). Price can also continue falling, and pessimism might become even more pronounced.