XRP Sentiment Signals Potential Rebound as Derivatives Show Bullish Lean Amid Acquisition Rumors
XRP Sentiment Signals Potential Rebound as Derivatives Show Bullish Lean Amid Acquisition Rumors
XRP's crowd sentiment has fallen to its lowest point in three weeks, entering a "fear zone" that historically precedes short-term price stabilization or relief rallies. This contrarian signal from Santiment Intelligence suggests that weak hands may have exited the market, potentially paving the way for a rebound. Adding to a cautiously optimistic outlook, XRP derivatives traders are leaning bullish, with open interest in futures jumping over 1%.
Amidst this, rumors of Ripple's potential acquisition of stablecoin issuer Circle for $11 billion have circulated, though previous reports of such a deal have been denied. The chatter might be related to a planned XRPL mainnet upgrade. XRP is currently trading around $1.33-$1.34, below key moving averages, but analysts suggest a break above a multi-month trendline could target $1.50.
XRP Enters "FUD Zone," Historically Signaling Rebounds
Analysis from Santiment Intelligence reveals that XRP's crowd sentiment has sharply deteriorated, reaching its most fearful level in three weeks. The ratio of positive to negative social media commentary has dropped to just 1.1 bullish comments for every bearish comment, pushing XRP into what Santiment describes as a "FUD zone." Historically, such periods of extreme fear and skepticism have acted as a contrarian signal, often followed by price stabilization or short-term bounces. The reasoning suggests that when fear peaks, weaker holders have likely already sold, reducing selling pressure and creating conditions ripe for a recovery.
Bullish Derivatives and Acquisition Rumors Add Speculation
Despite the prevailing fear among retail, XRP derivatives traders appear to be taking a bullish stance. Open interest in XRP futures surged over 1% in 24 hours, climbing to $2.86 billion across platforms like CME and Binance. This indicates that institutional players and traders with significant capital are betting on an upward movement.
Adding to the market's intrigue, rumors have resurfaced regarding a potential acquisition of stablecoin issuer Circle by Ripple for an estimated $11 billion. While speculation spread following a cryptic post by the XRP Ledger Foundation, previous reports of a similar deal were publicly denied by Ripple CEO Brad Garlinghouse, with Circle also stating it was not for sale. The current buzz is more likely linked to a major XRPL mainnet upgrade scheduled for May 27.
Further attention was drawn to wallets linked to Ripple co-founder Chris Larsen, which reportedly became active ahead of US midterm elections, though specific transaction details remain undisclosed.
Technical Outlook and Price Action
XRP has been trading around the $1.33-$1.34 mark. Technically, the token remains below its 50-day, 100-day, and 200-day moving averages, with the Relative Strength Index (RSI) hovering near 41. However, analysts suggest that a decisive break above a multi-month trendline could open the path towards the $1.50 level, supported by increased volume. Santiment notes that the opposite dynamic plays out during periods of heavy optimism (FOMO zone), where whale activity tends to fade, and prices often pull back.