**Crypto FGI Plummets to Extreme Fear, But Historical Trends Hint at Potential 500% Surge for XRP**
The crypto Fear and Greed Index (FGI) has once again plunged into extreme fear territory, yet historical patterns indicate that XRP could capitalize on this situation for a remarkable 500% increase. Market analyst Steph (@Steph_iscrypto) recently brought attention to this scenario in a post on X. His insights followed the latest downturn in XRP’s price, which was influenced by a broader decline in the crypto market amid ongoing macroeconomic concerns in the United States. To provide some context, despite a modest 1.88% uptick yesterday, XRP has faced losses over the past few days, including a significant 11.6% drop on Monday, February 24.
**Crypto FGI Hits 5-Month Low of 25**
In light of the market volatility, the crypto Fear and Greed Index (FGI), a tool that gauges investor sentiment in the crypto space, fell to 25 on February 25, marking its lowest point in five months. For reference, the index operates on a scale from 0 to 100, where lower values reflect bearish sentiment. Steph pointed out that this recent crash brought the index to the “Extreme Fear” level for the first time this year. He also highlighted an intriguing historical correlation between XRP and the FGI. The last time the FGI dropped to 25, indicating Extreme Fear, was in September 2024, when XRP was priced at $0.5249. Following that decline, prices began to recover, and sentiment improved. Although XRP experienced a slight rebound, it remained under bearish pressure until the U.S. elections in November 2024. After Donald Trump’s victory, XRP surged, reclaiming the psychological levels of $1, $2, and $3 within four months. By January 2025, XRP reached a seven-year high of $3.4, reflecting an impressive 547% increase from its September 9, 2024 price after the FGI hit 25 and subsequently recovered. With similar trends potentially unfolding, Steph’s analysis suggests that when prices do rebound, XRP could be poised for another significant surge. Notably, the asset is currently in a stronger position following the recent FGI drop to 25, trading at $2.29 compared to the $0.52 price from last September.
**XRP RSI and CCI at More Bullish Positions**
Additionally, a closer examination of the daily chart reveals that both the Relative Strength Index (RSI) and the Commodity Channel Index (CCI), which are momentum indicators, are currently in more bullish positions than they were last September. This enhances the likelihood of an XRP uptrend. Specifically, when the FGI hit 25 in September 2024, XRP was trading at $0.52, with the RSI at 43.52 and the CCI at -91.07. While these figures did not indicate that XRP was extremely oversold, they suggested that the asset had room for growth.
Now, with XRP trading at $2.29 and the FGI at 25, the RSI is at 37.93, and the CCI is around -144.81. Notably, the CCI below -100 confirms that XRP is oversold and primed for a rebound, while the RSI indicates further potential for expansion. These indicators suggest a promising outlook for XRP in the near future.
