- XRP’s negative funding rates may signal a potential price trend reversal, says analyst.
- Historical trends show similar XRP setups in 2024–2025 led to bullish runs.
- High short positions and negative funding rates may trigger an XRP price reversal.
An onchain technical analyst has spotted a signal that could lead to a reversal in the XRP price trend. In his latest post on X, the analyst identified XRP’s current negative funding rates as a crucial indicator in the current dispensation.
Negative Funding Rates Have Historical Implications on XRP
Citing his analysis, the technical analyst compared the current situation to historical trends. According to him, a similar scenario, which occurred between August and September 2024, triggered a bullish run for XRP. Again, the event repeated itself in April 2025, during the notable price correction of that period.
For context, funding rates turned negative for a period before bullish rebounds. Such rebounds were driven by a shift in investor sentiment, returning funding rates to positive territory.
XRP traded for $1.94 at the time of writing, reflecting about 47% decline from its last high reached in July 2025. The record price resulted from an exceptional 600% rally from November 2024, after which the crypto market entered a phase of distribution and correction.
A Timely Bearish Consensus Suggests an Upcoming Rebound
In the meantime, the analyst has identified a unique trend that supports his projection, a timely bearish consensus that is forming after a drawdown of over 50%. This has developed into a predominantly short positioning on XRP, with funding rates mostly negative since December 2025.
The dominant short positioning reflects an accumulation of leveraged short positions. However, it is crucial to note that such a scenario does not create short-term selling pressure. Instead, it builds latent buying pressure, which informs the analyst’s prediction of a potential reversal in XRP price. According to the analyst, leveraged short positions stand a significant chance of becoming liquidated when the price begins to move up.
Related: XRP Extreme Fear Signals Potential Exhaustion After 19% Drop
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
Source: https://coinedition.com/negative-funding-rates-point-to-potential-xrp-reversal-analyst/