XRP Enters Frenzied Zone as Partnership with Rakuten Pay Fuels Social Media Buzz to Extreme Levels

XRP tokens linked to Ripple have seen a resurgence in positive discussions on social media, a phenomenon that has historically preceded a reversal in price. On April 29, the ratio of positive to negative sentiment regarding XRP on social media spiked into what Santiment refers to as the "frenzy zone", reaching 3.9 on the firm's tracker. This is the highest reading since March 19, when a similar spike was followed by a sharp decline.

When sentiment ratios exceed the frenzy line, it indicates that the majority of crowd commentary is overwhelmingly positive, which Santiment interprets as a contrarian signal. Historically, when social media chatter reaches these levels, the token tends to consolidate or correct in the following days as the demand from buyers driving the social wave diminishes. The recent integration of XRP with Rakuten Pay, allowing for the conversion of points into XRP, has contributed to the asset experiencing its second-highest bullish sentiment on social media in the past two years.

This integration, which went live in early April, enables an estimated 44 million Rakuten users to spend XRP at over 5 million merchant locations, trade it within the Rakuten Pay app, and convert their Rakuten points directly into XRP. The market took two weeks to fully absorb the implications of this announcement, with sentiment gradually building before spiking this week. Despite the social media buzz, XRP traded at $1.37 on Thursday, down 2.1% over 24 hours and 3.7% on the week.

According to Santiment, March 29 marked the previous "buy the dip" window, when XRP sentiment hit the fear zone and the token bounced shortly after. The pattern this year has been consistent, with crowd sentiment leading price by 24 to 72 hours in either direction, and crowd extremes marking reversals more often than continuations.

XRP has primarily traded between $1.37 and $1.60 throughout April. A clear break of either side will determine whether the Rakuten integration marks the beginning of a sustained revaluation or another headline that fades into the chart.