XRP Derivatives Market Crashes into Deep Negative Territory

Crypto researcher BankXRP has highlighted a dramatic shift in sentiment surrounding XRP derivatives. According to funding rate data, traders have rapidly changed their positioning, moving from extreme optimism to deeply negative levels within weeks.

The chart tracking Binance's 30-day XRP funding rate Z-Score shows that the market went from 'full euphoria' to being 'wrecked into deep negative territory'. This rapid change in sentiment could influence XRP's next major move, according to BankXRP.

Funding data suggests that long-position traders are no longer dominating the market. Instead, short sellers are now in control, and are paying traders holding long positions. The speed of this reversal is notable, with the funding rate falling below neutral before stabilizing.