XRP Sentiment Hits Four-Month Low as Price Slides Toward $1; Garlinghouse's 'North Star' Remarks Sustain Optimism

XRP ($XRP) has been trading sharply toward the $1 mark lately, and the token sat only a few cents above that psychological level at press time. Weekly returns have remained in negative territory as well, which helps explain why the altcoin's social sentiment has deteriorated on the charts.

Sentiment Hits Lowest Level Since July

XRP's social sentiment fell to its weakest reading since July, with total negative sentiment registering 5.8435. The ratio of positive to negative sentiment stood at 0.65426, reflecting growing bearish dominance in social discussions.

The broader cryptocurrency market has also moved back into fear territory, with the Fear and Greed Index reading 32. The index blends volatility, trading momentum, social media activity, market dominance, and trend data into a single 0-to-100 score, with anything below 45 generally classified as fear — meaning the souring mood around XRP is part of a wider market-wide shift rather than a token-specific one.

Price Breakdown Triggers Liquidations

The 4-hour chart offered clear evidence of the sharp decline in trader sentiment. The altcoin's price dropped from $1.32 to $1.15, breaking below a key support level at $1.24 amid a broader market sell-off.

According to CoinGlass, the loss of the $1.24 support triggered substantial long liquidations and stop losses totaling more than $10.23 million. Liquidations occur when leveraged long positions are forcibly closed once their margin no longer covers potential losses, turning them into forced sell orders. Open interest (OI), the total value of outstanding derivatives positions, also fell from $3.78 billion to $2.77 billion, a drop consistent with existing leverage being unwound rather than fresh positioning being added.

Stalling net inflows into XRP ETFs have worsened the situation. ETF flows are widely followed as a barometer of institutional participation, and this month, for example, the ETFs recorded only one day of outflows, while the remaining days were inactive. Together, these factors precipitated XRP's steep descent to $1.15.

Even so, not all may be lost. The price was still holding above $1.15, and buying volume exceeded that of sellers, hinting at a breakdown in selling pressure. Ripple CEO Brad Garlinghouse's 'North Star' comments about XRP and the XRP Ledger, delivered during the Ripple Swell event — Ripple's annual conference for payments and digital asset professionals — have also kept some optimism alive.

Is There Reason for Optimism?

Garlinghouse has repeatedly described XRP and the XRP Ledger as Ripple's 'North Star' — the core purpose and guiding principle of the company. He made the remark in response to questions about whether Ripple USD ($RLUSD), the stablecoin Ripple launched in late 2024, is shifting Ripple's focus away from the chain's native token. According to the executive, RLUSD is merely competing with other stablecoins.

From a technical perspective, the $1.15 level marked the last lower high before a market structure shift turned XRP bullish. As a result, the ongoing decline could amount to a retest of that structural shift, though only time will tell whether that proves accurate. Should XRP fall below the level, the next demand zone would be $0.98. Alongside those chart levels, upcoming ETF flow reports and future readings of the Fear and Greed Index will provide additional data points for tracking how conditions develop.

Summary

XRP's social sentiment fell to its lowest level in four months as the price slipped below $1.24, with liquidations, cooling ETF flows, and market-wide fear weighing on the token. Meanwhile, Brad Garlinghouse's 'North Star' comments continue to sustain optimism around XRP and the XRP Ledger.