Analyst: Negative XRP funding rate points to excessive bearish sentiment

The funding rate for XRP perpetual futures on Binance has remained consistently negative this year, indicating an excessive level of bearish sentiment, according to on-chain analyst Darkfost. He noted that positions betting on an XRP decline are heavily skewed, suggesting a market-wide consensus has formed. Darkfost explained that when a majority crowds into the same position, the price structure becomes asymmetrical, and such agreements often materialize late. He highlighted that even with XRP currently down 60%, bets on further declines are more prevalent than expectations of a rebound. The analyst pointed out that in the past, extreme sentiment structures have often preceded price movements in the opposite direction, citing a previous instance where similar conditions led to a 127% rally for XRP, from approximately $1.6 to $3.6.