XRP witnesses a 3% fall after a delay in the SEC settlement, but the sentiment on social media surprisingly turns optimistic.
The proposed $50 million settlement between Ripple and the SEC has been turned down by a federal judge, resulting in a bearish impact on XRP’s price. Despite the disappointing turn of events, social media sentiment around XRP has shown a surprising surge.
The Ripple-SEC case appeared to be progressing with both parties agreeing to a reduced $50 million settlement. However, the joint motion for an indicative ruling has now been dismissed in court, as per the filing shared by defense attorney James K. Filian. The two parties were unable to demonstrate extraordinary circumstances that outweigh public interest or the administration of justice to justify altering the judgment. As a result, Ripple is still liable for the original fine of $125 million.
Following the announcement, XRP’s price took a hit. The asset, which was trading around $2.15 when the news broke out, fell below $2.09, marking a decrease of approximately 3%. This downturn, while mild by cryptocurrency standards, may indicate some panic selling.
Contrary to the market reaction, retail sentiment, as indicated by social media data, has taken a surprising leap. Analytics firm Santiment’s recent post sheds light on the response of social media users to the stalling of the Ripple-SEC case. The “Positive/Negative Sentiment” indicator by Santiment measures the ratio between positive and negative comments related to a specific coin on major social media platforms.
This machine-learning model-based indicator separates positive and negative posts and determines their comparative counts. Currently, the Positive/Negative Sentiment for all three major cryptocurrencies – Bitcoin, Ethereum, and XRP – is above the 1 mark, indicating a dominance of bullish posts over bearish ones.
However, for Bitcoin and Ethereum, the advantage of positive comments is minimal, indicating a mild level of optimism. XRP, on the other hand, shows a sharp spike, with its Positive/Negative Sentiment reaching 2.1 – the highest in 17 days. This figure corresponds to more than twice as many bullish calls as bearish ones.
Often, retail sentiment serves as a contrarian signal, with extreme values in either direction leading to a price reversal. While this shift in crowd mentality could suggest investors are not perturbed by the news, it’s worth keeping an eye on this indicator.
