XRP shorts dominate as funding drops 80% and OI falls
XRP slips below support as funding drops ~80% today on bearish leverage.
- XRP funding rate dropped nearly 80% on Thursday, signaling aggressive short bias and sustained downside positioning in derivatives markets.
- Open interest declined alongside negative funding, showing leveraged traders are de-risking as spot price trades below its short-term moving average and key Fibonacci support.
- XRP trends lower with RSI nearing oversold while crypto Fear & Greed prints “Extreme Fear” and BTC dominance climbs, pointing to rotation away from altcoins.
Daily XRP (XRP) funding rates declined nearly 80% on Thursday, February 19, according to derivatives market data, indicating continued pressure on the cryptocurrency.
Negative funding rates indicate that traders holding short positions are paying those maintaining long positions, a sign that bearish bets currently outweigh bullish exposure, according to market mechanics. The decline was accompanied by a drop in open interest, according to real-time data.
Negative funding rates suggest the market is positioned for further downside, as the metric reflects the balance between long and short traders.
Deeply negative funding can signal overcrowded positioning, according to market analysts. Historical data shows extreme short bias has sometimes preceded sharp reversals, particularly when price action stabilizes and short sellers are forced to cover positions. A prolonged negative funding environment marked a cyclical bottom for XRP in 2022 during the FTX collapse, according to historical market data.
XRP’s spot price showed a decline on the daily chart, falling below its short-term moving average and a key Fibonacci retracement level, which represents a loss of near-term support. The Relative Strength Index has fallen and is approaching oversold territory, according to technical indicators.
Market sentiment remains weak, reflected in an “Extreme Fear” reading on the Crypto Fear & Greed Index. Bitcoin dominance data suggests capital is consolidating into larger-cap assets rather than flowing into altcoins such as XRP, according to market metrics.
Technical analysts note that a recovery above the recent short-term resistance zone would signal price stabilization. Current short-term momentum favors bearish positions, as evidenced by the state of funding rates, according to derivatives market data.
