Ripple Whales Dump XRP, Funding Rate turns Negative
The death cross signal's appearance on its hourly chart raised doubts and concerns regarding XRP's immediate future course
Ripple’s XRP fell 3% on Friday amid whales dump and a drop in funding rates.
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Recent price action shows that the Ripple-based token may re-test the $2.2 support level.
XRP, the fourth-largest cryptocurrency by valuation, saw a major dump during the day. Members of the XRP community are upset about this action and are curious as to why it was taken.
Whales sold 60 million XRP between January 7 and 8, worth about $139 million. XRp lost its bullish momentum as it crashed from a high of $2.4 to $2.2 because of this massive movement, which added to the bearish momentum surrounding it.
The altcoin sparked investor optimism at the beginning of 2025. The death cross signal’s appearance on its hourly chart raised doubts and concerns regarding XRP’s immediate future course.
Funding Rate turns Negative
XRP’s funding rate briefly went negative for the day and is now significantly below the steady 0.01% level. Funding rates are regular payments made between cryptocurrency futures traders to help keep the price of a derivatives contract close to the spot price of its underlying asset.
Short traders pay a fee to long traders when funding rates are negative, which indicates increasing bearish pressure. When funding rates are positive, the opposite is true.
Open interest is still high despite the recent drop in XRP funding rates to 0.03%, indicating cautious optimism among traders as bearish sentiments have persisted in the market. On the other hand, during bullish seasons, markets frequently recover when funding rates fall below average.
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