XRP derivatives traders are leaning bullish. Open interest in XRP futures rose over 1% in 24 hours to $2.86 billion, with activity increasing on both CME and Binance. This suggests that traders with real money at stake are betting on a price increase.
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A Familiar Pattern In The Data
On-chain analytics firm Santiment noted a shift in crowd mood on May 26, pointing out that the ratio of bullish to bearish comments on social media had dropped to 1.1:1. This puts sentiment at its most fearful level in three weeks, a level that has historically been followed by short-term price stabilization or a bounce. Santiment’s reasoning is simple: when fear peaks, weak hands have already sold, and whales or institutions tend to step in and absorb the selling pressure.
XRP was trading at $1.33 at the time of reporting, up about 1% from a 24-hour low of $1.32. Volume increased by 5% over the same period, adding some support to the uptick.
📉 XRP’s crowd sentiment has swung sharply negative again, with the ratio of positive to negative commentary dropping to just 1.1 bullish comments for every 1 bearish comment. Historically, this kind of fear and skepticism has often acted as a contrarian signal for XRP’s price.… pic.twitter.com/KGubO783yE — Santiment Intelligence (@SantimentData) May 25, 2026
On the daily chart, the token is still below its 50-day, 100-day, and 200-day moving averages, and the Relative Strength Index is near 41. Reports indicate that a break above a multi-month trendline could open the door to $1.50.
Ripple And Circle Rumors Swirl
Much of the chatter around XRP on Monday focused on a possible acquisition. Speculation spread that Ripple is preparing to buy stablecoin issuer Circle for $11 billion. The rumor was traced back to a post by the XRP Ledger Foundation on X that simply said: “Tomorrow’s going to be a great day.” No executives from either company have commented on the speculation.
🚨 RUMOR ALERT 🚨 It is being reported that Ripple has acquired Circle, the issuer of the $61B stablecoin USDC. An official announcement is supposedly expected later today. If true, this would be one of the BIGGEST moves in crypto history. 👀 pic.twitter.com/Lpr7o7eX4D — John Squire XRP 🇺🇸 (@TheCryptoSquire) May 25, 2026
This isn’t the first time such a rumor has come up. Ripple CEO Brad Garlinghouse publicly denied a Bloomberg report last year that said Ripple had pursued Circle at a valuation of $4 to $5 billion. Circle, for its part, said it was not for sale and was focused on its IPO. Reports suggest the XRP Ledger Foundation’s post was more likely related to a major XRPL mainnet upgrade scheduled for May 27.
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Chris Larsen’s Wallets Draw Attention
Adding another layer to the day’s activity, wallets linked to Ripple co-founder Chris Larsen were reported to have become active again, with the timing drawing attention ahead of the US midterm elections. No further details about the transactions were immediately available.
Santiment noted that the opposite dynamic tends to happen during periods of heavy optimism, when the bullish-to-bearish ratio climbs into what it calls the FOMO zone. In those cases, whale activity often fades and prices tend to pull back.
Featured image from Gemini, chart from TradingView
Frequently Asked Questions
Here is a list of FAQs about the concept of extreme fear in the XRP market leading to relief rallies written in a natural conversational tone
BeginnerLevel Questions
1 What does it mean when people say XRP market fear is at extreme levels
It means that most traders and investors are feeling very pessimistic worried or panicked about XRPs price This is often measured by a Fear Greed Index or by looking at how much selling is happening
2 What is a relief rally
A relief rally is a shortterm price increase that happens after a big drop or a period of intense fear Its called a relief rally because it feels like a temporary break from the selling pressure
3 How does high fear lead to a relief rally
When everyone who was going to sell has already sold out of fear there are very few sellers left Then even a small amount of buying can push the price up quickly This sudden jump is the relief rally
4 Is a relief rally a guaranteed thing for XRP
No its not guaranteed Its a historical pattern that has happened often in the past but its not a rule The market could also stay fearful and continue to drop
5 Should I buy XRP right now because of this fear
Thats a personal financial decision Past patterns suggest that buying during extreme fear can be a good opportunity but it also carries risk The price could still fall further before any rally happens
Intermediate Advanced Questions
6 What specific indicators show that XRP market fear has reached relief rally levels
Common indicators include a very low Crypto Fear Greed Index a spike in trading volume during a price drop a high percentage of negative social media sentiment and a significant increase in XRP being moved to exchanges
7 How can I tell the difference between a genuine bottom and a fake relief rally
A genuine bottom often has 1