"Scared Investors All Shaken Out"...Santiment Detects Buy Signal Amid XRP's 3-Week High FUD

▲ XRP

Amidst the spread of fear, XRP has shown a buy signal, and with the rumors of Ripple's acquisition of Circle, expectations for a short-term rebound are heating up again.

According to crypto media outlet Coingape on May 26 (local time), on-chain analysis firm Santiment announced that the ratio of bullish to bearish comments on social media related to XRP has fallen to 1.1 to 1, entering the strongest fear zone in three weeks. Santiment explained, "When traders become overly fearful across social media, many weak hands have already sold."

Santiment analyzed that there have been frequent cases where XRP, after entering the FUD (Fear, Uncertainty, Doubt) zone, led to short-term price stability or rebound. This suggests that XRP whales and institutions may engage in low-price buying during such fear phases, reducing selling pressure and creating conditions for a price rebound. Conversely, Santiment pointed out, "The opposite effect can occur in periods of extreme excitement and overheating."

Market attention also turned to rumors of Ripple acquiring Circle. After the XRP Ledger Foundation posted on X (formerly Twitter) that "Tomorrow will be a great day," speculation grew that Ripple might acquire Circle, the issuer of USDC, for $11 billion. However, executives from both Ripple and Circle have not confirmed these rumors, and Coingape reported that the post was likely related to a major XRP Ledger upgrade.

These acquisition rumors recirculated, also linked to past acquisition offers ranging from $4 billion to $5 billion. Last year, Brad Garlinghouse, CEO of Ripple, denied a Bloomberg report that Ripple was pursuing an acquisition of Circle, and Circle also stated that it was not for sale and was focusing on its IPO.

Some buying sentiment was also confirmed in the derivatives market. According to CoinGlass, 24-hour XRP futures open interest increased by more than 1% to $2.86 billion. On a 4-hour basis, XRP futures open interest increased by more scope.32% on CME and more than 1.13% on Binance. On a daily chart, XRP traded below the 50-day, 100-day, and 200-day moving averages, and the Relative Strength Index (RSI) hovered around 41. A retest of $1.50 was suggested if it breaks through the multi-month trendline.

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