XRP Price Takes a Hit From Record Funding Spikes But Spot Buying Rises

The XRP price has been on a downward trend in recent days, driven by record funding spikes in the derivatives market. According to data from CryptoQuant, the XRP funding rate surged to its highest level in over a year, reaching around 0.0456 on June 1. This marked a sudden crowd of leveraged buyers, which raised concerns about a cascade of liquidations.

However, spot buying has surged by 610% during this period, as indicated by the exchange net position change metric from Glassnode. Despite this, the price is currently trading near the lower boundary of a falling channel, and the next few days will be crucial in determining the direction of the market.