XRP Funding Rate Turns Positive Amid Market Sell-Off: A Major Move Incoming?
The crypto market is experiencing mild selling pressure during the early Sunday session, with several major assets, including XRP, trading in the red. Over the past 24 hours, the crypto derivatives market has seen $138 million in liquidations, with short positions accounting for $90 million, highlighting a predominantly bearish sentiment.
Derar Hadri 
XRP Funding Rate Turns Positive Amid Market Sell-Off: A Major Move Incoming?
The crypto market is experiencing mild selling pressure during the early Sunday session, with several major assets, including XRP, trading in the red. Over the past 24 hours, the crypto derivatives market has seen $138 million in liquidations, with short positions accounting for $90 million, highlighting a predominantly bearish sentiment.
Yet, in a surprising twist, XRP is showing a bullish signal. According to data from CoinGlass, XRP’s funding rate has turned positive, suggesting that traders are increasingly optimistic about the token’s future price movement.
What Does a Positive Funding Rate Mean?
A positive funding rate indicates that traders are paying a premium to hold long positions, which implies growing demand and confidence in an upcoming price rise. On Binance, the XRP/USD funding rate stood at 0.0031%, reflecting bullish pressure as long holders are willing to pay shorts to maintain their positions.
XRP in Tight Consolidation – A Breakout Ahead?
Since dropping to a low of $2.03 on April 16, XRP has entered a tight consolidation phase, fluctuating between $2.03 and $2.12 over the past five days. This narrowing price range is often seen as a precursor to a larger, more volatile price movement.
Adding to this anticipation is a 19% drop in 24-hour trading volume, now at $1.39 billion — a common occurrence ahead of major breakouts as traders wait for confirmation.
Despite recent sell-offs, bears have failed to push XRP below the crucial $2 support level, signaling limited selling pressure at lower prices. This could give bulls an opening to attempt a recovery move toward the 50-day simple moving average (SMA) near $2.23, a key resistance zone in the short term. A break above this level could pave the way for more upside momentum.
On the flip side, if the $2 support fails, the market could lean in favor of sellers, potentially driving XRP down to the $1.72–$1.61 support zone.
Conclusion
While overall market sentiment remains shaky, XRP stands out with a bullish funding rate and strong support at $2, pointing to the potential for a sharp price move soon. Traders are watching closely — the consolidation is tightening, and the breakout direction could define XRP’s next major trend.
