"This is the contrarian trade playing out in real time. While retail traders panic-sold at $1.85 in late December, institutions poured $483 million into XRP ETFs during the month. That divergence-retail capitulation meeting institutional conviction-created the exact conditions for the "spring-loaded" rally analysts predicted. Exchange-held XRP sits at 1.6 billion tokens-the lowest level since 2018-marking a 57% decline since October 2025."
"December 2025 told the story of a market completely divided. Retail sentiment hit "extreme negativity," with the Crypto Fear & Greed Index dropping to 24. A Gemini poll found 73% of retail respondents expected XRP to remain below $2 by year-end. Social media erupted with frustration as XRP dropped 15% from $2.22 to $1.77-retail traders sold into every bounce, with XRP labeled a "dead coin" across Reddit and Twitter."
XRP climbed to $2.35, up 30% from the December 30 low of $1.85, after breaking $2.28 on January 5 and triggering a major volume surge. Institutional buyers accumulated aggressively in December, with XRP ETFs absorbing $483 million and recording 43 consecutive positive inflow days before December 26. Retail traders largely capitulated amid extreme negativity, the Crypto Fear & Greed Index falling to 24 and a Gemini poll showing 73% expected XRP to stay below $2. Exchange-held XRP fell to 1.6 billion tokens, the lowest since 2018 and a 57% decline since October 2025. The market now considers whether the rally will extend toward $4 or encounter stronger resistance.
Read at 24/7 Wall St.
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