XRP’s social sentiment has dropped to its lowest level since July, drawing the attention of Ali Martinez, a well-known cryptocurrency analyst recognized for his technical charting and contrarian calls.
Sentiment plunges on XRP
Data from Santiment, a blockchain analytics firm specializing in on-chain and sentiment tracking, indicates that public perception around XRP turned sharply negative in early November. The sentiment score, measured daily, transitioned from a positive outlook at the end of October to readings between -0.04 and -0.05, marking the lowest levels seen since mid-summer.
This decline in social mood followed the recent midterm election. The drop in sentiment happened rapidly, falling abruptly over several days instead of declining gradually.
XRP’s price also reacted to market pressure, falling 9.3% in a single day to $1.18 as broader crypto markets responded to political developments and risk-off sentiment.
XRP’s social sentiment has reached its lowest point since July, with the crowd turning sharply bearish, according to Santiment data shared by analyst Ali Martinez. He notes that this sudden drop in sentiment happened quickly and was not a gradual decline.
Contrarian outlook from Martinez
Despite the negative readings, Martinez suggests this bearish sentiment may present a contrarian buying opportunity. He explained that, in his view, the crowd’s pessimism signals that most traders have not yet positioned for an upside move.
Martinez pointed out that XRP may be forming a potential inverse head-and-shoulders bottom, a technical pattern often associated with bullish reversals. He stated that the lack of interest from the broader market could support a trend reversal if the pattern completes.
Mini dictionary: Inverse head-and-shoulders pattern is a charting formation with three lows, where the middle one is the deepest. This structure is commonly interpreted by traders as a sign of a possible trend reversal from bearish to bullish, with confirmation requiring a breakout above the neckline.
Martinez emphasized, “the bullish trade may not be overcrowded yet,” pointing out that sharp negative sentiment could lead to positive price action when sentiment rebounds.
Analyst reiterates his buy stance
Martinez acknowledged the timing of his analysis. On the day before the sentiment chart was posted, he recommended investors consider buying XRP. The subsequent dip to $1.18, he contends, has not changed his outlook and may even strengthen the case for a contrarian approach.
Investors who acted on Martinez’s previous recommendation now see a lower entry price. However, he maintains that the ongoing negative sentiment supports his argument that a reversal could be in play if technical criteria are met.
Pattern setup requirements
To confirm an inverse head-and-shoulders breakout, traders look for price stabilization followed by a move above the neckline—an established resistance level connecting the peaks between the lows of the pattern. Volume support is typically seen as necessary for the setup to be considered valid.
Martinez has not provided an exact neckline price for XRP’s current formation. The technical setup requires price to hold its present level and push meaningfully higher. Failure to maintain support could invalidate this potential reversal pattern.
