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Why XRP’s Funding Rate Spike Is Like That One Odd Guest Nobody Expects

BBG News

So, the crypto circus is throwing a bit of a tantrum this Sunday morning, with several coins looking as red as my face trying to explain blockchain to a toddler. XRP? Also getting in on the sulky mood, flirting with the *red zone*. In the past day, the crypto derivatives market suffered a hefty $138 million haircut. And guess what? Shorts (you know, those pessimists betting on doom) are wearing the big fancy hats here—they racked up a sassy $90 million of that mess.

But hold your judgmental horses because XRP is doing its own weird thing—its funding rate is strutting around positively, according to CoinGlass. Which, if you’re not fluent in crypto-lingo, basically means the longs (those eternal optimists) are buying in like they’re at a Black Friday sale. It’s like a subtle wink saying, “Hey, maybe we’ve got a cheeky bull in the room.” 🐂

Here’s the tea: A positive funding rate means the price of the contract is a bit spunkier than the actual asset price, so the long players have to throw some fees to the shorts. It’s financial Stockholm Syndrome, really.

Specifically, CoinGlass reports the XRP/USD pairing on Binance is tiptoeing around a 0.0031% funding rate. Meanwhile, XRP itself is sulking, down 1.25% over the last 24 hours, now lounging at $2.06.

XRP’s Cooking Something – Or Just Stirring the Pot

After dipping to a sad $2.03 on April 16 (the crypto equivalent of spilt coffee on Monday morning), XRP decided to play it cool. It’s been hanging out, consolidating in a tight little range between $2.03 and $2.12 for the last five days, like a kid trying to decide which snack to steal from the pantry.

Volume dropped 19% to $1.39 billion—crypto’s version of holding your breath before screaming down the rollercoaster track. If this snooze-fest keeps up, we might be looking at a grand move soon, but be warned—it could go up, it could go down, or it could just ghost you completely.

On one side, the bears have dramatically failed to punch XRP below the $2 support level, basically showing they’re more bark than bite. Bulls might be lining up for a comeback tour, possibly eyeing the 50-day SMA at $2.23 like it’s their spotlight moment. Clear that hurdle, and the bulls get to dance a little more confidently. Mess that up, and the bears might drag XRP down to somewhere between $1.72 and $1.61—a crypto soap opera cliffhanger.

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2025-04-20 13:21

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