XRP Funding Rate Shows Signs of Overheated Bearish Sentiment

An analysis by CryptoQuant suggests that XRP's funding rate on Binance is showing signs of overheated bearish sentiment, similar to the period just before its all-time high in July 2025.

The analysis, conducted by Darkpost, an analyst at CryptoQuant, shows that XRP's negative funding-rate stretch this year resembles the market structure seen before a sharp surge in the past. Since January, XRP's Binance funding rate has mostly remained in negative territory, with occasional sharper drops.

However, as XRP recently moved back above $1.40, the funding rate also turned slightly positive. But looking only at the overall trend this year, Binance traders have generally leaned toward bearish positions, which could potentially lead to a reversal in market sentiment and a price increase for XRP.

Darkpost pointed out that imbalances arise when many traders crowd into the same direction, often forming late after a trend has already progressed significantly. He also noted that the current phase resembles April 2025 in that funding rates are improving along with a price rebound, which could be a positive sign for XRP's future performance.