XRP Funding Dives Below Zero: Market Sentiment Shift Sparks Uncertainty

XRP's derivatives market has seen a significant shift in recent days, with its funding rate on Binance falling to -0.002, marking the first negative reading in 14 trading sessions.

This change is critical because it indicates that bearish positioning has gained ground, with short traders now paying long traders.

However, it's essential to note that negative funding does not always lead to a price decline, as seen in April 2025 when XRP funding became deeply negative before the asset climbed from $1.60 to $3.65, an 82% gain.

The recent liquidations across XRP's derivatives market have also contributed to this shift, with both long and short traders facing heavy losses during the past two sessions, clearing around $14.2 million in total.