XRP, Funding Rate Negative..."Rising Through Pessimism"

▲ XRP (XRP)

XRP's funding rate remains in negative territory, signaling a massive price surge through a short squeeze.

According to a Bitcoinist report on April 18 (local time), crypto analyst Tony Spilotro analyzed XRP's funding rate. Negative figures have persisted on major exchanges, including Binance, since early 2026. A negative funding rate indicates a dominance of short positions, where short sellers pay fees to long sellers. Spilotro diagnosed that a price rebound occurs when pessimistic outlooks reach a consensus.

Recently, XRP's price has fallen by about 60% from its peak. Nevertheless, investors are still betting on further declines, continuously strengthening their short positions. However, in the past, when similar psychological imbalances occurred, the price surged. XRP rocketed 127% from $1.6 to $3.6 in one go, a precedent where a large number of short positions were liquidated. Spilotro evaluated that the current pessimism is a phase of energy accumulation for a massive rally.

The network capabilities of the XRP Ledger are also being actively re-evaluated. Recent price fluctuations are not mere system errors; they are a process to confirm whether the XRP Ledger can handle extreme value transfers. New partnership initiatives, which began on April 17, are positive. Strong momentum is building, with over $1.2 million in value already processed. Real-world asset tokens are targeting multi-trillion dollar markets and emerging as the standard for value transfer.

Changes in the institutional financial system are also favorable for XRP. With over 3,000 traditional banks closing, the crisis of existing financial networks is escalating. In a limited supply structure, the combination with real-world assets creates an imbalance between supply and demand. The dominant analysis suggests that asset values will be re-evaluated in conjunction with Bitcoin (BTC)'s upward trend. XRP is currently looking for a breakthrough around the $1.45 mark on the daily chart. Despite the pessimistic funding rate, network activity continues to increase steadily.

Investors are closely watching the possibility of a massive short squeeze that could begin with a reversal in the funding rate. As April draws to a close, attention is focused on whether XRP will break through pessimism and achieve an unprecedented rally. It is time to prepare for qualitative changes in the market. Experts predict that the current bottoming phase will serve as a springboard for long-term growth. It is important to be aware of price volatility and follow market trends.

*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*