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

▲ XRP

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

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

Recently, XRP's price has fallen by approximately 60% from its peak. Despite this, investors are still betting on further declines, continuously strengthening short positions. However, in the past, when similar psychological imbalances occurred, prices surged. XRP once rocketed 127% from $1.6 to $3.6 in one go, clearing a large number of short positions. Spilotro assessed that the current pessimism is a phase of energy accumulation for a large-scale rally.

The network capabilities of the XRP Ledger are also being actively re-evaluated. Recent price fluctuations are not merely system errors but a process to confirm whether the XRP Ledger can handle extreme value transfers. New partnership initiatives launched on April 17 are positive. A strong momentum is building, with over $1.2 million in value already processed. Real-world asset tokens are targeting a trillion-dollar market, 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 in existing financial networks is escalating. The combination of a limited supply structure with real-world assets creates an imbalance in supply and demand. The dominant analysis suggests that asset values will be re-evaluated in conjunction with Bitcoin's (BTC) upward trend. XRP is currently seeking 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 to 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's 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 any investment losses based on it. The content should be interpreted for informational purposes only.*