XRP Price Warning Sign: Is Ripple in Trouble?

According to blockchain analytics, fear, uncertainty and doubt surrounding Ripple’s cross-border payments token have increased.

XRP is seeing its “highest level of retail FUD” since US President Donald Trump announced trade tariffs six months ago, blockchain analytics firm Santiment reported on Tuesday using a bullish-to-bearish sentiment ratio.

Trump’s global tariff bomb in April caused a massive 20% price drop in XRP to below $1.80 within days, in line with a broader sell-off in the crypto market.

It’s not all bad news, however. There have been more bearish than bullish comments in the last three days. The report stated before adding that this is “generally a promising buy signal” as markets move opposite to retail traders’ expectations.

😮 XRP is experiencing the highest level of retail FUD since Trump’s tariffs were announced six months ago. There have been more bearish than bullish comments over the past two days, which is generally a promising buy signal. The markets are moving opposite to small traders’ expectations. pic.twitter.com/flO7jjlo9m

— Santiment (@santimentfeed) October 7, 2025

Unwarranted FUD increase

The negative sentiment comes as XRP has failed to perform while others in the area such as Bitcoin, Ether and BNB have reached new all-time highs or are approaching previous highs. Furthermore, BNB reversed XRP in terms of market capitalization this week.

“Nothing to do with FUD, just pure reality with XRP value accrual that is literally zero and provides no benefit to holders at all,” said one respondent.

Historical sentiment analysis shows that extreme retail FUD often precedes XRP rallies, as evidenced by the run to an all-time high of $3.65 in July. However, the token has since fallen more than 21% and has failed to break the resistance above $3 several times since mid-August.

In reality, things are looking very optimistic for Ripple and XRP, with legal and regulatory clarity expected by 2025 and an expansion of partnerships and integrations within the global TradFi ecosystem.

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The Ripple DeFi ecosystem has also seen a recent expansion, as reported by CryptoPotato.

The CEO of agricultural investment firm Teucrium, Sal Gilbertie, said that XRP is “a coin that will have the most use” and that XRP has “a real use case.”

🗣️As the CEO of Teucrium says $XRP has real use and calls it the coin with the most uses…

You don’t argue.
Just listen. 👂🚀🌊 pic.twitter.com/dXSJJTKlyP

— John Squire (@TheCryptoSquire) October 7, 2025

XRP Price Outlook

Nevertheless, retail traders and investors remain unconvinced as the value is down 3.8% on the day to $2.87 at the time of writing.

XRP reached $3.10 late last week, but resistance once again proved too strong, triggering the pullback. The asset has traded sideways since its surge in mid-July, but is up 38% since the start of the year and a whopping 440% since the same time last year.

Chart guru Peter Brandt painted a bleaker picture, identifying himself by developing a ‘classic descending triangle’, add that there is a danger of a drop to $2.22 if XRP closes below $2.68.