XRP Funding Rates And Spot Volume Tell An Interesting Story For Price

Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and publishing How Our News is Made Strict editorial policy that focuses on accuracy, relevance, and impartiality Ad discliamer Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio. Crypto analyst Cryptoinsight has drawn attention to an “extremely interesting” price action for XRP. He highlighted the altcoin’s funding rates and spot volume, which provided insights into XRP’s recent downtrend, with its drop below the psychological $2 level.  How XRP’s Funding Rates And Spot Volume Explain The Price Action

In an X post, Cryptoinsight noted that open interest is rising significantly as funding flips heavily negative and the premium also continues to get more negative. In line with this, he remarked that leveraged players artificially created the move down for XRP. The analyst then pointed to the rise in spot volume, which is also significant.  Related Reading XRP’s 173-Day Theory: What Happens If This Historical Trend Plays Out Again 1 day ago

The rise in the XRP spot volume is said to be happening just as the altcoin sweeps the recent wick into the year-long support at around $1.8, thereby creating a Bullish Divergenceon the 4-hour chart. Cryptoinsight warned that the altcoin may have to drop a little further based on the hourly liquidity pools.  Source: Chart from Cryptoinsight on X

However, the analyst is confident that a potential bounce for XRP from these price levels will be “quite violent” when it happens and will trigger a shortsqueeze back to the upside. Crypto analyst Darkfost also recently notedthat there are predominantly short positions for XRP at the moment, with the funding rates on Binance mostly negative since December. 

The analyst stated that negative funding rates signal a potential reversal for XRP, and that any price rise could trigger several short liquidations, pushing the price much higher. A similar pattern is said to have played out twice for the altcoin since 2024. The first was between August and September 2024, while the second was in April 2025, with the price rebounding after the funding rates turned negative for a while.  A Monthly Close Above $1.91 Is Key

In an X post, crypto analyst ChartNerd said that XRP must close above its monthly 20 EMA at $1.91 this month. This came as he warned that, historically, after macro trends, closes below this EMA have signaled further decline. As such, the analyst declared $1.91 a fine line in the sand that market participants should be watching closely.  Related Reading XRP Price Recovery Is Possible If It Reclaims This Ichimoku Base 4 days ago

A “great sign,” according to the analyst, is XRP’s breakout of its 3-week-long falling wedge resistance. With this breakout, the altcoin could be targeting $2.40, where the breakdown began after the falling wedge pattern formed. However, XRP is set to face key resistance between the $2.13 and $2.20 range. Meanwhile, ChartNerd assuredthat the altcoin’s fractal remains valid, with a rally to $27 still on the horizon. 

At the time of writing, the XRP price is trading at around $1.90, up over 2% in the last 24 hours, according to datafrom CoinMarketCap. XRP trading at $1.89 on the 1D chart | Source: XRPUSDT on Tradingview.com Featured image from Vectorstock, chart from Tradingview.com