XRP flashes reversal signal as Binance funding stays bearish

An on-chain reversal signal has appeared for XRP even as funding rates on Binance have remained negative for nearly 90 days. The token gained 5.7% in the past month.

On X, on-chain analyst Darkfost wrote that the Total3 index, which excludes Bitcoin, Ethereum and stablecoins, recovered about $125 billion after a drawdown of more than $544 billion since early February. Darkfost wrote that Binance funding rates for XRP have held a bearish bias for close to three months. XRP rose roughly 27% over the same period.

Darkfost pointed to April 2025, when XRP reached about $1.25 before a rally that produced a 126% advance.

Technical views differ. One market participant compared XRP’s recent price compression to patterns that preceded breakouts in Toncoin and Ondo and projected a potential move toward $2 to $4. In a post on X, the account Bird wrote: “The next XRP move toward $2-$4 is loading.”

Other analysts identified a symmetrical triangle on XRP’s chart. That pattern indicates market indecision and does not predict direction on its own. The triangle is nearing its apex toward the end of May, when a decisive break becomes more likely. An upside break would require buyers to clear the triangle’s resistance; a downside break would likely lead to additional selling.

Funding rates are periodic payments between long and short positions in derivatives markets. Sustained negative funding means shorts dominate or demand for short exposure is higher. A shift to balanced or positive funding would reflect reduced short pressure, while continued negative funding would point to persistent short demand.

XRP has underperformed several peers over the past month: Zcash, Toncoin, Ondo and Internet Computer posted larger gains. Traders and analysts will watch on-chain metrics and exchange funding into late May for indications of whether the current price pattern resolves to the upside or downside.