Binance Metrics Signal Funding Rate Reset Risk for XRP

XRP's short-term prospects are uncertain as Binance metrics indicate a possible funding rate reset. The cryptocurrency has been experiencing selling pressure, with long liquidations surging by 94% from the previous week and exceeding the three-month average.

According to blockchain outlet The Crypto Basic, XRP open interest on Binance fell from over $500 million in mid-June to $399 million on July 10. This decline suggests a reduction in leverage positions, but the funding rate has risen by 266% to 0.007, making it more expensive for long holders to maintain their positions.

The combination of falling open interest, rising funding rates, and increased long liquidations often precedes a 'funding-rate reset', where prices drop further before stabilizing. XRP's recent price action supports this trend, having fallen 22% in June and rebounding to $1.18 on July 4, only to slip back to $1.07.

Key near-term levels for XRP are at $1.16 and $1.18. If the cryptocurrency can recover above these levels, it could signal a move towards a deleveraging phase without additional major drops.