XRP: Funding Rate Turns Negative as Price Tests Multi-Month Lows

XRP now trades near $1 .09, down sharply from the $3 .75 area marked at the recent peak visible on the chart. At that peak, funding rates across all exchanges were running elevated — broadly positive and consistent with aggressive long-side positioning into strength. Price and funding were aligned at that stage, which is the environment where positive funding is a symptom of momentum rather than a vulnerability.

The signal emerged as price began rolling over from the $3 .50–$3 .75 zone. Funding rates remained positive through much of the decline, indicating that perpetual market participants were slow to abandon their long bias even as spot price structure deteriorated. That persistence of long-side funding into a weakening price environment was the mismatch — not the funding level in isolation.

That vulnerability has now become fully visible. Funding rates have flipped negative, currently reading around -0.01%, the most sustained negative-funding print visible on this chart going back to the entire period shown. Price has followed, compressing to $1 .09 — a level last seen before the late-2025 rally phase.

Negative funding, by itself, is not a buy signal. But it does indicate that the long-side crowding that persisted through the drawdown has now unwound. Short-side positioning has become the dominant lean in perpetual markets. Historically, sustained negative funding in a weak price structure can precede a short squeeze or mean-reversion bounce — but that outcome requires a catalyst and price confirmation, neither of which is present yet.

The funding regime has reset. Whether price follows is the question the market has not yet answered.

Source: @CryptoQuant