XRP buy signal flashes as funding rate turns deeply negative: Will bulls step in?
XRP's deeply negative funding rate suggests bearish dominance, while declining ETF activity and Ledger TVL hint at fading ecosystem interest.Summary
XRP experienced a 9% drop, pushing the perpetual futures annualized funding rate to a deeply negative -20%, the lowest since October, indicating that sellers are paying buyers, which sometimes signals a potential reversal, though it can also suggest traders are stepping back. Aggregate open interest remains flat at $2.8 billion, showing bears are hesitant to increase exposure after a significant price drop from July highs. Further dampening bullish sentiment are declining metrics in the XRP ecosystem, including subdued trading volumes for US-listed XRP ETFs and a significant portion of the Ripple-backed stablecoin RLUSD being issued on Ethereum rather than the XRP Ledger. Moreover, Total Value Locked (TVL) on the XRP Ledger has hit a 2025 low of $68 million, signaling reduced engagement with DApps, which, coupled with the strength of competing chains like Solana and BNB Chain, suggests low odds for sustained bullish momentum for XRP in the near term.
(Source：Cointelegraph)