XRP saw a muted week, slipping about 1% as the market rode another bout of volatility. The token briefly spiked to $2.17 before retreating under the key $2.10 resistance, leaving traders on edge as they wait for the next directional move. Recent on-chain and derivatives data, however, suggest the market may be coiling for a breakout. How funding rates factor in Perpetual-futures funding rates — payments exchanged between longs and shorts to keep futures prices tethered to spot — can offer early clues. When funding is positive, longs pay shorts, which often indicates crowded long positioning and can precede consolidation or sharp corrections as the cost of holding longs rises and long squeezes become more likely. By contrast, sharp negative funding spikes (shorts paying longs), particularly alongside declining moving averages, have historically coincided with price bottoms followed by short-term rebounds. Analyst view: limited downside, higher odds of a bounce Market analyst PelinayPA points out XRP’s current funding rate sits near -0.00323 and both the 30- and 50-period simple moving averages (SMA30 and SMA50) are trending down. That profile shows leverage is skewed toward shorts and overall sentiment is subdued. Still, PelinayPA argues that, based on historical patterns, this setup reduces the odds of a sustained sell-off and instead raises the likelihood of a short-term price recovery or breakout. He cautions this isn’t a signal for a major rally—just an increased probability of upward movement after consolidation. Price snapshot and key levels At the time of writing XRP trades around $2.06, down roughly 0.24% on the day and about 0.99% over the week, but up 13.45% month-over-month — meaning many recent buyers are sitting in profit. XRP remains well below the cycle high of $3.50. For bulls to regain control, reclaiming the immediate $2.10 resistance is important; above that, targets to watch include $2.60 and $3.00. Bottom line Derivatives flow and on-chain signals suggest the market is gathering energy after a period of consolidation, with short-term upside more likely than further prolonged selling. Traders should watch funding rate trends and whether XRP can decisively close back above $2.10 to confirm a bullish shift. Read more AI-generated news on: undefined/news

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