(MENAFN- Crypto Breaking) XRP , one of the most discussed cryptocurrencies in the market, is currently experiencing a wave of bearish sentiment among retail traders, reminiscent of previous market lows. Despite the prevailing fear, analysts suggest that this downturn could be setting the stage for a significant rebound, driven by institutional accumulation and technical breakout patterns. As the broader crypto markets remain supported by declining US dollar strength and optimism around potential ETF approvals, XRP's price trajectory remains closely watched by investors.

• Data indicates rising fear among XRP traders, a pattern often preceding strong rebounds in the past.

• XRP's technical setup shows a symmetrical triangle breakout, with an upside target of approximately $4.29.

• On-chain whale accumulation and institutional optimism bolster the case for a bullish shift.

• Market sentiment remains resilient amid macroeconomic headwinds and supportive US dollar trends.

Is XRP Price Likely to Further Decline or Rebound?

Current onchain analytics reveal that XRP's bullish-to-bearish sentiment ratio has dipped below 1.0 over the past two days. This indicates that social media chatter is dominated by negative sentiment, with bearish mentions outnumbering positive outlooks, according to analytics platform Santiment.

XRP's bullish-to-bearish ratio versus price. Source: Santiment .

Nevertheless, Santiment views this widespread“fear, uncertainty, and doubt” (FUD) among retail traders as a bullish signal. Historically, during similar sentiment dips in April, XRP's price initially declined by over 25%, followed by a rebound of more than 125%, showcasing how small traders' panic often triggers stronger institutional buy-ins.

This fractal pattern suggests that if the current dip follows the same trajectory, XRP could be poised for a breakout rather than a decline, as larger investors absorb the selling pressure and position themselves for future gains.

Distribution Trends Among Key XRP Holders

On-chain data further supports a bullish outlook, highlighting increased accumulation among large XRP holders. Metrics show that XRP supply held by entities with holdings exceeding 10 and 100,000 tokens has steadily grown during recent consolidation phases, as reported by Glassnode.

XRP supply held by addresses with 10 to 100K+ tokens. Source: Glassnode

This pattern indicates strong institutional interest, which could significantly influence the price once broader market conditions improve. Despite macroeconomic headwinds such as a weakening US dollar and ongoing US government shutdown, XRP traders appear resilient, supported by positive sentiment around potential SEC approval of XRP-based ETFs.

Such developments could catalyze further bullish momentum once the technical setup confirms a breakout, adding to the growing optimism within the crypto community.

Technical Outlook Shows a Bullish Breakout in Sight

Looking at the chart analysis, XRP is currently in the process of confirming a breakout from a symmetrical triangle formation. The price has recently retested the breakout level, a typical move known as a“retest,” which, if successful, could propel XRP toward a target of roughly $4.29, representing about a 45% rally from current levels.

XRP/USD three-day price chart. Source: TradingView

This upside aligns with previous bullish projections for XRP, indicating a potential substantial recovery. Conversely, a confirmed breakdown below the trendline could see XRP retesting lower support levels near $2.33, increasing the odds of a deeper correction.

Investors should consider that market conditions can change rapidly. This analysis is for informational purposes only and does not constitute financial advice. Conduct thorough research before making any trading decisions.

Crypto Investing Risk Warning
Crypto assets are highly volatile. Your capital is at risk. Don't invest unless you're prepared to lose all the money you invest.

MENAFN07102025008006017065ID1110164105