- On-chain and social data analysis firm Santiment said negative sentiment about XRP on social media has increased significantly.
- Santiment said that historically, the greater the increase in negative mentions, the more likely prices are to rebound.
- It explained that once market sentiment is depressed and selling pressure is exhausted, even small supply-demand changes can lead to a price rebound.
- The article was summarized using an artificial intelligence-based language model.
- Due to the nature of the technology, key content in the text may be excluded or different from the facts.
Social media sentiment surrounding XRP has deteriorated significantly compared with the average, and an analysis suggested this could be a signal indicating a possible price rebound based on past cases.
On the 23rd (local time), on-chain and social data analysis firm Santiment said the proportion of negative mentions in recent social media posts related to XRP has increased significantly compared with usual.
Santiment said, "Historically, the more individual investors question the upside potential of a particular coin, the higher the likelihood that its price will rise afterward."
Santiment explained that this phenomenon has been repeatedly observed. If market participants' sentiment becomes excessively subdued, selling pressure is largely exhausted, and afterward a relatively small change in supply and demand can cause the price to rebound. In particular, periods when fear or skepticism concentrates in social indicators often coincide with phases of searching for a bottom from a medium-term perspective.
