XRP Signals Cautious Rebound as Selling Pressure Weakens

• XRP Long/Short Ratio climbs to 1.02, indicating reduced bearish control.

• Open interest remains stable at $1.26 billion, signaling trader caution rather than mass exits.

• Funding rate turns negative at -0.048%, with shorts paying longs, highlighting a shift in market sentiment backed by data from Coinalyze.

XRP price analysis reveals rebound potential in 2025 as selling weakens. Discover key indicators, open interest trends, and expert insights on XRP’s next move. Stay informed—explore now!

What is driving XRP’s potential rebound in late 2025?

XRP’s potential rebound in late 2025 stems from weakening bearish momentum, as evidenced by a rising Long/Short Ratio and stable open interest levels. Despite a brief dip below 0.9, the ratio has rebounded to 1.02 on major exchanges, showing diminished selling strength according to data from Coinalyze. This, combined with tentative price recovery near $2.46, points to consolidation rather than further downside, though traders remain cautious amid negative funding rates.

How are XRP’s derivatives market signals influencing trader sentiment?

XRP’s derivatives market exhibits mixed signals that are cautiously optimistic for traders. Aggregated open interest has stabilized around $1.26 billion over the past week, indicating limited new leverage entries despite price volatility, as reported by Coinalyze. The average funding rate has flipped to -0.048%, where short positions now pay longs, reflecting a growing bearish bias in perpetual contracts. However, the lack of sharp OI declines suggests positions are being held rather than liquidated in panic, per analysis from TradingView indicators.

This stability implies traders are monitoring key levels closely. For instance, the funding rate shift, while negative, hasn’t triggered massive short covering yet, which could precede a bullish flip if buying volume increases. Experts from financial platforms like Coinalyze note that such patterns often precede consolidations leading to rebounds, especially when paired with on-chain data showing reduced exchange inflows. Overall, these metrics demonstrate a market in equilibrium, with potential for upside if external catalysts, such as regulatory updates from the U.S. SEC, align favorably.

Even when the ratio briefly dipped below 0.9, it quickly rebounded. This is a sign that selling strength is weakening.

Open Interest steadies, funding flips negative

XRP’s aggregated OI has held relatively steady around $1.26 billion over the past week, proving limited new leverage inflows despite recent price movements.

This stability means traders are maintaining positions rather than entering fresh longs or shorts.

Source: Coinalyze

Meanwhile, the average Funding Rate slipped to -0.048%, meaning short positions are now paying longs. This is a sign of growing bearish bias in the derivatives market.

However, since OI hasn’t dropped sharply, it indicates consolidation rather than panic. Perhaps traders are cautious, but not exiting positions all together.

A cautious rebound

XRP’s recent price action showed tentative signs of recovery, trading near $2.46 after forming a higher low.

Source: TradingView

The RSI went up to 40.8; easing bearish momentum but still below the neutral 50 mark.

Meanwhile, the DMI showed narrowing gaps between the +DI (11.82) and -DI (36.02) lines, which means sellers’ control is waning. Volume remained modest.

If XRP can sustain momentum above $2.45 and the RSI crosses 45, a potential push toward the $2.7-$2.8 zone could materialize in the short term.

Technical analysts from platforms like TradingView emphasize that XRP’s higher low formation at $2.40 support level aligns with historical patterns observed during previous market cycles. Data from Coinalyze further supports this, showing a 15% reduction in short dominance over the last 48 hours. Ripple’s ongoing partnerships, including integrations with global payment networks, continue to bolster long-term confidence, as noted in official Ripple reports. However, macroeconomic factors such as U.S. Federal Reserve interest rate decisions could impact broader crypto sentiment, influencing XRP’s trajectory.

In terms of on-chain metrics, XRP Ledger transaction volumes have increased by 12% week-over-week, reaching over 1.2 million daily transactions, according to blockchain explorers. This uptick suggests renewed network activity, potentially driven by institutional interest. Expert commentary from financial analysts at Bloomberg highlights that such stability in derivatives amid price dips often precedes 20-30% recoveries in altcoins like XRP, based on 2024-2025 market data.

Frequently Asked Questions

What factors are contributing to XRP’s long/short ratio improvement in 2025?

XRP’s long/short ratio has improved to 1.02 in late 2025 due to weakening selling pressure and reduced bearish positioning on exchanges. Data from Coinalyze indicates a quick rebound from a dip below 0.9, signaling diminishing short dominance. This shift reflects trader caution and potential accumulation, supported by stable open interest levels around $1.26 billion.

Is XRP’s funding rate turning negative a sign of an imminent price drop?

No, XRP’s funding rate at -0.048% indicates shorts are paying longs, showing bearish sentiment in derivatives, but it doesn’t guarantee a drop. With steady open interest and easing RSI at 40.8, this could signal consolidation. Traders should watch for volume spikes above $2.45 for rebound confirmation, as per TradingView analysis.

Key Takeaways

• XRP Long/Short Ratio at 1.02: Demonstrates fading bearish control and potential for balanced market sentiment.
• Stable Open Interest of $1.26 Billion: Highlights trader retention amid volatility, reducing liquidation risks per Coinalyze data.
• RSI Rising to 40.8 with Narrowing DMI: Suggests waning seller dominance; monitor for crossover above 45 to target $2.7-$2.8.

Conclusion

In summary, XRP’s potential rebound in late 2025 is supported by improving long/short ratios, stable open interest, and technical indicators like RSI and DMI showing reduced bearish pressure. Drawing from data by Coinalyze and TradingView, these signals point to cautious optimism amid derivatives shifts. As XRP navigates this consolidation phase, investors should stay attuned to regulatory developments and volume trends for sustained upward momentum—position yourself informed for future gains.

Published by COINOTAG on October 15, 2025. Last updated October 16, 2025.