XRP funding rates on Binance have turned sharply negative, a market signal that has historically preceded short-term price rebounds in the token.
The shift comes as XRP trades between roughly $1.35 and $1.50 after falling about 60% from its July 2025 all-time high of $3.65, with many derivatives traders positioning for further downside.
“When market consensus becomes excessively aligned in one direction, history shows that markets tend to surprise the majority,”
Said CryptoQuant analyst Darkfost.
Analysts say deeply negative funding rates can act as contrarian indicators because crowded short positions sometimes trigger corrective rallies if prices begin moving higher.
On the technical side, analyst EGRAG CRYPTO identified $1.55 as a key trigger level, noting that a weekly close above that mark could weaken the current downward trend.
Exchange data also showed rising withdrawals, with about 7.03 billion XRP leaving trading platforms in February, including 3.38 billion XRP withdrawn from Binance.
“In such uncertain conditions, it becomes essential to carefully select positions, relying on market signals that are beginning to emerge,”
Darkfost added.
At the time of reporting, XRP price was $1.40.