XRP’s price action has caught some eyes lately, as it’s not following Bitcoin’s usual patterns. While XRP has been climbing, interestingly, its funding rate is still in negative territory – meaning more traders are betting against it than for it.
Bitcoin, on the other hand, shows positive funding rates with traders generally more optimistic. This unusual setup for XRP could spark a short squeeze, where those betting on price drops have to buy in to cover their positions, potentially pushing prices even higher. Adding to this potential upside, larger investors appear to be quietly building XRP positions.
What you'll learn 👉
XRP’s Negative Funding Rate and Market Sentiment
Crypto analyst Cryptoinsightuk pointed out that XRP’s funding rate remains negative even as its price climbs. This indicates that more traders are betting against the cryptocurrency using leveraged short positions.
Interestingly $XRP's funding rate is negative throughout this move up, suggesting that more people are leverage short right now than long;
— Cryptoinsightuk (@Cryptoinsightuk) March 6, 2025
This contrasts $BTC OI as funding on $BTC is positive meaning more people are long than short.
Meaning $XRP's price action could be… pic.twitter.com/90i0YmZpA6
Meanwhile, Bitcoin’s funding rate is positive, meaning more traders are going long on BTC than shorting it. According to Cryptoinsightuk, this contrast suggests that XRP’s price action is healthier than Bitcoin’s, as it rises without excessive long positions inflating the market.
The analyst also suggested that XRP could experience a short squeeze. If prices continue rising, short sellers may be forced to buy back their positions, pushing the price even higher. CoinGlass charts shared by the analyst support this observation, showing that XRP’s market structure could be more sustainable than Bitcoin’s.
Some market participants speculate that Bitcoin maximalists might be behind XRP’s short positions, contributing to the contrasting sentiment between the two assets.
Read also: Dogecoin (DOGE) Could Still See a 30x Price Surge to $6: Here’s How
XRP Whale Accumulation and Institutional Interest
On-chain analyst Ali reported that large investors purchased over 90 million XRP in 72 hours, at the time he shared his tweet. This surge in accumulation aligns with previous reports indicating that whales have acquired more than $1 billion worth of XRP in a short period.
The data suggests increasing institutional and large-scale investor interest in the asset. This whale action aligns with the forthcoming White House crypto conference on March 7, 2025, when industry leaders and legislators will go over digital asset rules.
Whales bought over 90 million $XRP in the last 72 hours! pic.twitter.com/lfE1k6UIdA
— Ali (@ali_charts) March 6, 2025
Some analysts believe this event could impact XRP’s adoption and market trajectory. Ali’s chart tracks major XRP transactions, reflecting a bullish trend in investor behavior.
Technical analyst Dark Defender noted that XRP recently broke a key 4-hour resistance level. The RSI has formed a Golden Cross, a bullish signal indicating potential for further gains.
According to the analyst, XRP needs to break above $3.3999 to confirm its upward momentum. Support levels stand at $2.22, while resistance is at $3.3999 and $5.85. With increasing whale accumulation and a potential short squeeze, XRP’s price action remains in focus as market conditions shift. At publication, XRP trades at $2.56, up over the past day and week.
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