Crypto researcher BankXRP has highlighted a dramatic shift in XRP derivatives sentiment, pointing to funding rate data that moved from extreme optimism to deeply negative levels within a matter of weeks.
The observation suggests that traders have rapidly changed their positioning, creating conditions that many market participants believe could influence XRP’s next major move.
Sharing a CryptoQuant chart tracking Binance’s 30-day XRP funding rate Z-Score, BankXRP noted on X that the market had gone from “full euphoria” to being “wrecked into deep negative territory” in a short period.
The post ended with a question directed at followers: “You know why this matters right?” The comment implied that the current funding environment could carry important implications for XRP’s near-term price action.
$XRP funding rate went full euphoria then got wrecked into deep negative territory within weeks 📉
You know why this matters right? pic.twitter.com/zPTXy8g7gG
— 𝗕𝗮𝗻𝗸XRP (@BankXRP) July 28, 2026
Funding Data Shows Rapid Change in Market Sentiment
The chart attached to the post illustrates how XRP’s funding rate Z-Score surged into strongly positive territory before reversing sharply. Positive funding rates generally indicate that long-position traders are paying shorts, reflecting bullish sentiment. In contrast, negative funding rates suggest that short sellers dominate the market and are paying traders holding long positions.
BankXRP’s focus was not on the funding rate alone but on the speed of the reversal. The data shows that what had previously been an optimistic derivatives market quickly shifted into a bearish one, with the funding rate falling well below neutral before beginning to stabilize.
The researcher did not make a direct price prediction but suggested that the change in positioning deserves close attention because it often affects how leveraged traders respond during periods of heightened volatility.
Community Explains Why the Data Could Matter
The post prompted several members of the XRP community to explain why they believe the funding rate deserves attention.
CryptoMarc stated that deeply negative funding rates usually indicate that the market has become heavily short. He added that if XRP’s price begins climbing despite that bearish positioning, short sellers could face forced liquidations. Such liquidations can trigger a short squeeze, where traders rush to close losing positions by buying the asset, potentially accelerating upward price movement.
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Another community member, BOOM!, offered a different perspective on how leveraged positions could unfold. He suggested that leveraged long positions could first be liquidated during a sharp decline, creating additional selling pressure before the market rebounds. In his view, that recovery could then force short sellers to cover their positions, leading to another wave of buying as the price continues moving higher.
While the responses outlined different possible sequences, both comments centered on the role of leveraged positions in shaping XRP’s next move.
BankXRP’s post ultimately emphasized the significance of the rapid shift in funding rates, leaving market participants to watch whether the current imbalance results in increased volatility or develops into the type of liquidation-driven move that traders have described.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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