XRP Price Eyes Breakout as Bearish Funding Rates Hint at Potential Reversal

XRP has gained 5.7% over the past month, lagging behind most major large-cap cryptocurrencies except stablecoins. While assets like Zcash (ZEC), Toncoin (TON), Ondo (ONDO), and Internet Computer (ICP) posted stronger rallies, analysts believe XRP could be preparing for a significant price reversal.

Crypto analyst Darkfost highlighted a key on-chain indicator showing that XRP funding rates on Binance have remained bearish for nearly three months. This marks the longest bearish stretch in recent history, even as XRP recorded a 27% recovery during the same period. Funding rates reflect trader sentiment in futures markets, and prolonged negative rates often suggest that traders are heavily betting against the asset.

According to the analyst, extreme bearish sentiment after a steep correction can sometimes signal an upcoming trend reversal. A similar setup occurred in April 2025 when XRP dropped to $1.25 before staging a powerful rebound that eventually triggered a 126% rally.

The broader crypto market has also shown signs of recovery. Since February, the Total3 index, which excludes Bitcoin, Ethereum, and stablecoins, has added roughly $125 billion in market value after suffering a massive decline of more than $544 billion.

From a technical perspective, analysts are divided on XRP’s next move. Some traders compare XRP’s current consolidation phase to previous breakout patterns seen in Toncoin and Ondo, both of which later surged significantly. Others point to XRP’s symmetrical triangle pattern, a formation that signals market indecision rather than a clear direction.

As XRP approaches the apex of the triangle, market watchers expect a decisive breakout soon. A move above resistance could ignite bullish momentum, while a breakdown may lead to renewed selling pressure. For now, traders remain focused on whether buyers can push XRP above its key resistance zone and confirm the next major trend.