XRP Funding Turns Deeply Negative as Open Interest Falls to Multi‑Year Base
XRP perpetual futures funding rates across major exchanges have moved into deeply negative territory, with the lowest observed funding around -0.0748%, indicating dominant short positioning. Aggregated funding weighted by open interest is at its weakest weekly level since late 2022 (except the November 2022 FTX week). Open interest has fallen back to a multi‑year accumulation base that has historically preceded rebounds. Price action shows XRP trading near $1.48–$1.50; key supports to hold are ~$1.45 (short‑term) and a broader demand zone between $1.15–$1.30. Negative funding can signal overcrowded shorts that may trigger short squeezes if price stabilizes, but it also reflects current bearish derivatives stress. A weekly close above $1.50 would help confirm a return to bullish momentum. Primary keywords: XRP, funding rate, open interest, perpetual futures; secondary/semantic keywords included: short squeeze, derivatives positioning, accumulation base, support levels.
Bearish
Deeply negative funding rates indicate that shorts currently dominate perpetual futures markets for XRP — shorts pay longs — a clear sign of bearish sentiment and overcrowded short positions. Historically, similarly negative, prolonged funding (notably around the late‑2022 period) coincided with market bottoms and subsequent rebounds when open interest rested on long‑term accumulation zones. The current drop in open interest to multi‑year base levels strengthens the case that the market may be near a liquidity/interest trough rather than in a sustained structural decline. For traders, this implies a mixed edge: short term the market looks bearish (momentum and derivatives pressure), increasing downside risk if broader crypto markets worsen or key supports ($1.45 and $1.15–$1.30) break. However, if price stabilizes and funding remains deeply negative, the risk of a short squeeze increases, which can produce rapid bullish spikes and volatility—opportunities for mean‑reversion traders and short‑covering plays. A weekly close above $1.50 would materially reduce bearish derivatives pressure and signal potential trend reversal. In summary: expect elevated volatility, short‑term downside bias, and an asymmetric bounce risk if shorts are forced to cover — similar dynamics played out around late 2022 FTX lows.