XRP Funding Rates Plunge 240% Amid Price Surge

XRP's funding rates have seen a significant decline of 240% in just one day, dropping to its lowest level yet. This sharp decrease coincides with an uptrend in XRP's price, which has broken through a key technical resistance level and surged by 4% past the $1.13 mark.

The divergence between funding rates and prices suggests that traders are becoming less aggressive with leveraged long positions as XRP continues to advance. This normalization of leverage could potentially create room for further price gains if spot demand can keep up.

Traders are now eyeing the $1.24-$1.28 region as the next major resistance zone, while the total crypto market capitalization has risen nearly 3% and Bitcoin (BTC) advanced about 3.5%, propping altcoins up in the process. Market participants are also monitoring the upcoming deadline for the CLARITY Act, which could influence regulatory sentiment toward digital assets.

Looking ahead, traders will be watching whether XRP can maintain support above the current price of $1.13, as a sustained move above that could lead to further gains. However, if the price suffers while funding rates continue falling into negative territory, we could see a shift in market sentiment, with traders increasingly betting on downside momentum.