XRP Price Flashes Good Buy Signal amid Circle Acquisition Rumors: Santiment

Varinder Singh
Varinder Singh

Varinder Singh

Independent Sr. Journalist
Expertise : Bitcoin, Crypto, Global Macro, DeFi, Blockchain, Web3, US Stocks, AI, Regulations and Lawsuits, & More
Varinder is a seasoned leader in the fintech and crypto media with over 12 years of experience, including over 6 years dedicated to blockchain, crypto, and Web3 developments. He is known for covering high-impact and quality news stories for publishers such as CoinGape, The Coin Republic, and The Crypto Times, while perfecting and training multiple journalists during his tenure. Being a Master of Technology degree holder, analytics thinker, and tech enthusiast, he has shared his knowledge of disruptive technologies in over 6000 news articles and papers.
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XRP Price Flashes Good Buy Signal amid Circle Acquisition Rumors Santiment
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Highlights

  • Santiment highlights on-chain data suggesting a good buy signal for XRP price.
  • XRP whales and institutions are buying the recent dip.
  • XRP Ledger Foundation's post sparked Ripple's $11 billion Circle acquisition rumor.
  • XRP price jumps over 1% amid buying sentiment among derivatives traders.

XRP price is witnessing massive buy-the-dip sentiment from whales and institutions. On-chain expert Santiment points out data suggesting a rebound and a good buy signal. Meanwhile, the XRP community is buzzing today about Ripple’s potential acquisition of stablecoin giant Circle.

XRP Price Set for Rebound amid Good Buy Signal, Santiment Predicts

The XRP bullish-to-bearish comment ratio on social media has slipped to 1.1:1, Santiment reported on May 26. This places crowd sentiment in the FUD zone at its highest fear level in three weeks.

“When traders across social media become overly fearful, many weak hands have already sold,” it added. XRP whales and institutions often buy the dip during such fear and skepticism, reducing selling pressure and creating conditions for a XRP price rebound.

Historically, dips into the “FUD zone” have frequently followed a short-term XRP price stabilization or bounces. Santiment predicted that the social media FUD hitting a 3-week high is a good buy signal.

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“The opposite effect can happen during periods of extreme excitement and hype,” Santiment noted. When the XRP bullish-to-bearish comment ratio rises into the “FOMO zone,” it suggests local tops because many traders are already positioned bullishly. XRP whale activity fades and price drops lower.

Ripple’s Circle Acquisition Rumors Fuel Speculation

The XRP community buzz has intensified today amid rumors that Ripple is acquiring USDC issuer Circle for $11 billion. However, no executives from both crypto firms have cleared the rumor yet, sparking speculation within the community.

The rumor swirled up following a cryptic X post by XRP Ledger Foundation, stating “Tomorrow’s going to be a great day.” The speculation echoes earlier rumors of bids valued between $4-5 billion, but the post is likely related to the major XRP Ledger upgrade.

Last year, Ripple CEO Brad Garlinghouse denied Bloomberg’s report that Ripple pursued an acquisition of stablecoin issuer Circle, dismissing rumors of a $4-$5 billion bid. Circle also stated it was not for sale and focused on its IPO.

XRP Price Bounces amid Rising Volatility and Derivatives Open Interest

XRP price jumped 1% from the 24-hour low of $1.33 to trade at $1.34 at press time. Furthermore, trading volume has increased by 5% over the last 24 hours amid multiple bullish on-chain data. Meanwhile, Ripple executive chairman Chris Larsen’s wallets became active again ahead of the US midterm elections.

In the daily timeframe, the XRP price is trading below the 50-MA, 100-MA, and 200-MA at the time of writing. The Relative Strength Index (RSI) remains sideways near 41. However, a breakout above the multi-month trendline could trigger a rally back towards $1.50.

XRP Price 24 Hour Chart
XRP Price 24 Hour Chart. Source: TradingView

CoinGlass data showed buying sentiment in the derivatives market. At the time of writing, the 24-hour XRP futures open interest jumped more than 1% to $2.86 billion. The 4-hour XRP futures open interest on CME and Binance climbed more than 0.32% and 1.13%, respectively. This signals bullish sentiment among derivatives traders.

Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

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About Author
About Author
Varinder is a seasoned leader in the fintech and crypto media with over 12 years of experience, including over 6 years dedicated to blockchain, crypto, and Web3 developments. He is known for covering high-impact and quality news stories for publishers such as CoinGape, The Coin Republic, and The Crypto Times, while perfecting and training multiple journalists during his tenure. Being a Master of Technology degree holder, analytics thinker, and tech enthusiast, he has shared his knowledge of disruptive technologies in over 6000 news articles and papers.