Summary

  • XRP has undergone a recent 30% correction, even as bullish bets in Binance's derivatives market have continued to expand.
  • The cumulative funding rate for XRP perpetual futures rose to 0.18%, the highest level in more than a year, and the analyst said investors should be cautious about crowded positioning.
  • By contrast, spot XRP ETFs saw net outflows of 9.37 million XRP, or about $10.4 million, and the analyst added that traders should watch both cumulative funding rates and spot ETF flows when timing entries.

Forecast Trend Report by Period

XRP has fallen about 30% in a recent correction, but bullish positioning in Binance's derivatives market has continued to build. At the same time, more than $10 million has left U.S. spot XRP exchange-traded funds.

On Nov. 10, cryptocurrency market analyst Darkfost wrote on X that the 30-day cumulative funding rate for Binance XRP perpetual futures had climbed to 0.18%, the highest level in more than a year.

Funding rates are periodic payments in the perpetual futures market designed to keep long and short positioning in balance. A higher positive funding rate is typically read as a sign that investors are crowding into long positions.

Previous sharp increases in XRP funding rates have at times coincided with market tops, the analyst said. By contrast, deeply negative funding rates have tended to overlap with price bottoms. This is the first time since last October that the cumulative funding rate has returned to a similarly elevated level.

Even so, XRP has already undergone a correction of about 30%. Bullish positions remain intact in Binance's derivatives market despite the price decline, suggesting investors should watch for crowded positioning.

Flows in spot ETFs pointed in the opposite direction from the derivatives market. Spot XRP ETFs posted net outflows of 9.37 million XRP, or about $10.4 million, in a recent day, making it one of the weaker trading sessions of the year.

The analyst added that investors should look at both cumulative funding rates and spot ETF flows when assessing entry points in XRP.

Minseung Kang