An onchain technical analyst has spotted a signal that could lead to a reversal in the XRP price trend. In his latest post on X, the analyst identified XRP’s current negative funding rates as a crucial indicator in the current dispensation.
Citing his analysis, the technical analyst compared the current situation to historical trends. According to him, a similar scenario, which occurred between August and September 2024, triggered a bullish run for XRP. Again, the event repeated itself in April 2025, during the notable price correction of that period.
For context, funding rates turned negative for a period before bullish rebounds. Such rebounds were driven by a shift in investor sentiment, returning funding rates to positive territory.
XRP traded for $1.94 at the time of writing, reflecting about 47% decline from its last high reached in July 2025. The record price resulted from an exceptional 600% rally from November 2024, after which the crypto market entered a phase of distribution and correction.
In the meantime, the analyst has identified a unique trend that supports his projection, a timely bearish consensus that is forming after a drawdown of over 50%. This has developed into a predominantly short positioning on XRP, with funding rates mostly negative since December 2025.
(adsbygoogle = window.adsbygoogle || []).push({});The dominant short positioning reflects an accumulation of leveraged short positions. However, it is crucial to note that such a scenario does not create short-term selling pressure. Instead, it builds latent buying pressure, which informs the analyst’s prediction of a potential reversal in XRP price. According to the analyst, leveraged short positions stand a significant chance of becoming liquidated when the price begins to move up.
Related: XRP Extreme Fear Signals Potential Exhaustion After 19% Drop
