"XRP's ( ) funding rate on Binance dropped to -0.028%, a 10-month low. A funding this negative means the selling side is crowded-almost everyone is already short, and there's no one left to sell. The last time funding hit these levels was April 2025, and the XRP price rallied from $1.60 to $3.65 by mid-July, marking an 82% gain. When nearly everyone is expecting lower prices, any positive catalyst can spark a rapid reversal."
"Funding rate measures which side of the market is paying to hold their position. When it goes deeply negative, sellers are paying a premium to stay short-a sign that bearish positioning has become extreme. On-chain analyst Arab Chain at CryptoQuant calls the current reading "a clear move toward defensive positioning," meaning traders are leaning heavily bearish. CryptoQuant strategist Darkfost adds that "the market tends to move against a late consensus." In other words, when nearly everyone is positioned the same way, reversals often follow."
XRP's funding rate on Binance fell to −0.028%, marking a ten-month low and indicating that sellers have become heavily crowded. Deeply negative funding means shorts are paying to hold positions, a sign of extreme bearish positioning that often precedes fast unwinds. Comparable negative funding in late 2024 and April 2025 preceded strong rebounds, including an 82% rally from $1.60 to $3.65. Analysts describe the reading as defensive positioning and note markets can move against a late consensus. A reversal today would likely require a significant positive catalyst or improved broader-market conditions.
Read at 24/7 Wall St.
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