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>>XRP’s funding rates have turned negative again, signaling possible effects on a price rally.

XRP’s funding rates have turned negative again, signaling possible effects on a price rally.

crypthub

about 23 hours ago

Derivative Signal and XRP Sentiment

Derivatives often warn of sentiment changes before price moves. Binance now shows XRP funding rates turning negative again. Analyst Xaif points out past negative‑funding clusters marked local bottoms. The repeat suggests positioning may trigger a reversal.

Mechanics of Negative Funding

In perpetual futures, negative funding makes shorts pay longs. This reveals a dominant bearish leverage bias. Over‑shorting can set up a short‑squeeze when buying resumes. XRP’s history shows such squeezes precede price rebounds.

Binance as Market Barometer

Binance handles a bulk of crypto derivatives, reflecting market mood. A slide into negative funding signals intensified bearish conviction. Crowded shorts are rarely sustainable; prices often reverse. This contrarian effect has repeatedly aligned with XRP recoveries.

Potential Outlook

The new negative funding marks strong pessimism but may precede a rally. If spot demand rises, a short‑squeeze could lift XRP quickly. While not certain, current positioning favors a possible reversal.