The XRP funding rate has fallen to the lowest level since April 2025 — which means

[Ben Graham]

The price of XRP has shown a sheer amount of resilience after a couple of red days for the general crypto market. The altcoin has managed to return to around $1.5 over the weekend, reflecting a nearly 25% jump since reaching its latest local low.

However, this fresh burst of momentum seems to be just that, a short-lived moment of positivity that might not translate to the long-term trajectory. According to the latest on-chain data, the XRP price might still be tilting more towards the bearish side of the market.

Low Funding Rate Signals Reduced Appetite In Derivatives Market

In a recent Quicktake post on the CryptoQuant platform, Arab Chain revealed that belief might be increasingly exiting the XRP derivatives market. This on-chain observation is based on changes in the funding rates on Binance, the world’s largest cryptocurrency by market capitalization.

For context, the “funding rate” metric estimates the periodic fee exchanged between traders in the derivatives market of a particular cryptocurrency. A positive funding rate often signals that the long traders (investors with buy positions) are paying a fee to short traders (investors with sell positions) in the derivatives market, while a low funding rate metric implies that the payment is the other way round.

As shown in the chart above, the XRP funding rate on Binance has been in a notable decline over the past few days, recently dropping to around -0.028, reflecting its lowest level since April 2025. According to Arab Chain, this shift signals a clear move toward defensive positioning and hedging against further downside.

The on-chain analyst revealed that a deeply negative funding rate shows the level of pessimism in the market, as traders are more willing to pay a premium to hold short positions. This trend is even more damaging, considering the decline seen by the XRP price in the past few weeks.

Arab Chain wrote in the Quicktake post:

Historically, funding rates reaching extreme negative levels often coincide with advanced stages of downtrends, when a large portion of traders are already positioned short.

While low funding rates have sometimes set the stage for temporary rebounds triggered by a return of speculative demand, they often reflect heightened caution and reduced risk appetite in the market. Nevertheless, this funding rate level also suggests that any uptick in sentiment could catalyse “faster-than-expected” price moves.

XRP Price At A Glance

As of this writing, the price of XRP stands at around $1.44, reflecting an over 1% decline in the past 24 hours.