Tldr:
- XRP funding prices on Binance have turned extremely negative, indicating heavy short positions.
- XRP is down 70% since July 2025, although it remains above historic lows.
- Open interest fell to $350.6 million as leveraged traders exited futures positions on a large scale.
- The NVT ratio remains high at 162.86, indicating that network activity is lagging valuation levels.
XRP funding rates have fallen to extremely negative levels as the token continues to trade under pressure. The broader altcoin market remains weak, with nearly 40% of altcoins sitting near all-time lows.
XRP has avoided this fate so far, however, and has lost about 70% of its value since reaching $2.45 in July 2025. Traders on Binance are increasingly bracing for a further decline.
Funding rates indicate extreme pessimism
Derivatives data shows that the downtrend towards XRP has intensified over recent weeks. Financing rates On Binance, when aggregated over a 30-day period to reflect broader trader sentiment, it moved into extreme negative territory. This pattern indicates that an increasing number of traders are holding short positions against XRP.
Analyst Darkvost noted that this pessimism now forms a clear consensus among derivatives traders. According to the analysis, XRP funding prices have remained bearishly biased since the beginning of the year. This consistency over several months indicates persistent doubts about the token’s near-term direction.
Historically, extreme financing rate readings following sharp corrections have sometimes preceded reversals. Darkfost pointed to April 2025 as an example, when XRP It fell to $1.25 before the recovery began. This rebound eventually produced a 126% rally, showing how quickly oversold conditions can turn.
It remains uncertain whether a similar pattern will emerge this time. The current setup shares some similarities with previous bottom phases, but market conditions vary across cycles. Traders are keeping a close eye on any signs that selling pressure may be approaching exhaustion.
Open interest and market value indicate weak demand
Beyond financing rates, other metrics also reflect the cautious market environment. Open interest in XRP futures It fell to $350.6 million, one of the lowest readings in recent months. This decrease indicates that leveraged traders are closing their positions rather than adding new exposure.
Analyst Belenai Notice The market capitalization of XRP also decreased, reaching $10.89 billion. This decrease shows that capital is leaving the market along with a decrease in leverage.
source: Encrypted quantity
Fewer open positions combined with shrinking market cap indicate limited interest in new buying at current levels.
The NVT ratio, which compares network value to transaction volume, remains high at 162.86. A high NVT ratio usually indicates that on-chain activity has not kept up with the rating. This gap indicates that network usage has not yet supported a meaningful price recovery.
Together, these indicators describe a market in which risk appetite has declined significantly. Futures positions continue to shrink while the spot market value shrinks in parallel.
Sellers appear to be maintaining control of the price action for now, even with funding price signals reminiscent of previous reversal points.
