XRP went from $0.47 to a local high of $0.93 in July amid sentiment shifts as the Ripple v. SEC case brought seemingly positive news to XRP investors, after Judge Analisa Torres’ decision about what would, or would not make the token a security.
According to data retrieved by Finbold on August 23 about the XRP/USDT trading pair on Binance, the token’s price fully retraced from its upside movement. Going from $0.938 to $0.422 in 35 days, registering a total loss of 55% from the highest to the lowest points on the chart.
The aggressive retrace occurred as all cryptocurrencies saw a massive exit of $200 billion (-17%) in total market cap, according to data retrieved from TradingView.
XRP/USDT 1-day candles price chart. Source: TradingView (Vinicius Barbosa @ Finbold)
XRP suffers as the market sentiments now favor ‘fear’ over ‘greed’
After weeks in a row of neutral sentiment in the cryptocurrency market, according to CoinMarketCap’s Fear & Greed Index, the general feelings finally chose a side, expressing a dominating sentiment of ‘fear’, instead of ‘greed’.
Fear & Greed Index. Source: CoinMarketCap
Fear usually surges during high-volatility movements toward a negative performance, favoring the market ‘bears’. Right now, the index marks 34 points, where 1 is for extreme fear, and 100 for extreme greed.
Interestingly, during the XRP pump in July, metrics retrieved by Finbold from the Santiment show a direct correlation between ‘Social Dominance’ — usually reflecting a positive sentiment — and XRP’s price.
XRP Social Dominance v. Price. Source: Santiment (Vinicius Barbosa @ Finbold)
With a growing fear as sentiment in general for the whole market, both XRP’s price and social dominance have pivoted to a down-trend after the previous brief moment of extreme greed for the token.
Besides the positive news about the SEC case, the sentiment over XRP was also positively impacted on August 9, with the news about Ripple being chosen by the Bank for International Settlements (BIS) as part of their international payments task force.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
