XRP Funding Hits Extreme Lows: Is a Bear Trap Brewing?

XRP's funding rates have plummeted to extreme lows as bears pile in, raising questions about whether a bear trap is brewing. The cryptocurrency's OI-Weighted Funding Rate has dropped into negative territory, indicating that most traders are shorting XRP.

This setup is unusual, as it typically points to a market that's becoming heavily tilted to one side. When spot activity goes quiet and shorts continue to build up, it often signals that retail participation has largely dried up.

The recent T. Rowe Price Active Crypto ETF move adds to the mix, highlighting the disconnect between growing institutional interest and increasingly bearish positioning in XRP's derivatives market.