However, this fresh burst of momentum seems to be just that, a short-lived moment of positivity that might not translate to the long-term trajectory. According to the latest on-chain data, the XRP price might still be tilting more towards the bearish side of the market.
Low Funding Rate Signals Reduced Appetite In Derivatives MarketAs shown in the chart above, the XRP funding rate on Binance has been in a notable decline over the past few days, recently dropping to around -0.028, reflecting its lowest level since April 2025. According to Arab Chain, this shift signals a clear move toward defensive positioning and hedging against further downside.
Arab Chain wrote in the Quicktake post:
Historically, funding rates reaching extreme negative levels often coincide with advanced stages of downtrends, when a large portion of traders are already positioned short.
While low funding rates have sometimes set the stage for temporary rebounds triggered by a return of speculative demand, they often reflect heightened caution and reduced risk appetite in the market. Nevertheless, this funding rate level also suggests that any uptick in sentiment could catalyse “faster-than-expected” price moves.
XRP Price At A GlanceAs of this writing, the price of XRP stands at around $1.44, reflecting an over 1% decline in the past 24 hours.
