XRP is facing strong bearish pressure after funding rates dropped nearly 80%, showing traders are betting heavily on further price declines. The sharp change highlights growing negative sentiment in the crypto market.
Funding rates turned deeply negative on February 19, meaning traders holding short positions now dominate the market. Negative funding rates show that more investors expect prices to fall rather than rise.
At the same time, open interest — which tracks the total number of active futures contracts — also declined. This suggests many traders are reducing risk and closing positions as uncertainty increases.
XRP’s price has fallen below key technical support levels, including its short-term moving average and an important Fibonacci retracement level. This signals weakening momentum and loss of short-term stability.
Technical indicators also show weakness. XRP’s Relative Strength Index, which measures buying and selling pressure, is approaching oversold territory. This means the asset has been heavily sold and could face continued volatility.
Broader market sentiment remains negative. The Crypto Fear and Greed Index has entered “Extreme Fear,” while Bitcoin dominance has increased, showing investors are moving funds into larger, safer crypto assets.
Analysts say extreme short positioning can sometimes lead to sudden rebounds if traders close bearish bets quickly. However, current market signals suggest bearish momentum remains dominant for now.
The latest data shows XRP is under pressure as traders remain cautious and prepare for possible further price declines in the short term.
