Key Takeaways:
- Crypto Fear & Greed Index drops to 37, signaling fear-driven accumulation zone for XRP.
- Analyst Levi Rietveld identifies technical setup preceding potential XRP breakout.
- Retail selling pressure decreases while institutional buying interest increases.
- XRP holds critical $2.40 support level amid October market volatility.
XRP appears positioned for a significant price movement as market sentiment indicators reach levels historically associated with accumulation phases. The Crypto Fear and Greed Index dropped to 37 on October 16, 2025, signaling widespread fear among traders following the recent Binance liquidation event.
Levi Rietveld of Crypto Crusaders highlighted this sentiment shift in a video shared on social media platform X. The analyst emphasized that statistical data supports a contrarian bullish outlook, noting that fear-driven markets often precede substantial upward price movements.
https://Twitter.com/LeviRietveld/status/1978568429281177773
XRP currently trades at $2.31, down 4.06% on the day but maintaining stability above the critical $2.40 support zone. The token experienced significant volatility throughout October, declining approximately 16% over the past week as over 2.23 billion tokens worth roughly $5.5 billion moved to exchanges since October 10.
Technical Setup Points to Reversal Potential
Following the Binance situation that triggered widespread liquidations and short-term selloffs, XRP’s technical structure shows characteristics consistent with previous market reversals. The Fear and Greed Index reading of 37 marks the kind of low sentiment reading that historically indicates smart money accumulation.
Rietveld shared insights on market psychology timing, stating that in his crypto experience, he has learned to adopt bullish positioning when broader market participants remain bearish. He noted that investors are beginning to recognize the situation may represent an opportunity rather than continued deterioration.
Exchange inflow data supports this thesis, with XRP deposits to major platforms decreasing significantly after peaking at approximately 362 million tokens on Binance following October’s flash crash. This reduction in exchange inflows suggests easing selling pressure, as traders typically transfer assets to exchanges with the intention of selling.
The derivatives market shows stabilization signs, with the futures Open Interest weighted funding rate flipping positive to 0.0015% on Thursday, recovering from a historical low of -0.2045% during Saturday’s crash. This positive funding rate indicates traders are increasing exposure to long positions.
The 200-day Exponential Moving Average sits at $2.62, serving as immediate resistance, while the 50-day moving average at $2.87 represents a secondary barrier. If bulls successfully defend the $2.40 support level, technical analysts anticipate a potential breakout above the 200-day EMA, which could open the path toward the psychological $3.00 resistance level.
Institutional demand for XRP products remains strong despite regulatory delays. According to CoinShares data, XRP products recorded $61.6 million in inflows for the week ending October 13, marking the 18th consecutive week of positive net inflows.
