XRP Shows Reversal Signal as Funding Stays Bearish
XRP triggered a reversal signal seen before its 126% rally; Binance funding rates have been bearish for nearly three months while price compresses inside a symmetrical triangle.
On-chain data shows XRP has flashed a potential reversal signal similar to the pattern that preceded its 126% rally, while Binance funding rates have held a bearish bias for almost three months and price trades inside a symmetrical triangle.
Analyst Darkfost posted on X that the Total3 index — which excludes Bitcoin, Ethereum and stablecoins — has recovered about $125 billion after a drawdown of more than $544 billion that began in early February. Darkfost noted that XRP’s funding rates on Binance have maintained a bearish bias for the near three-month period.
Darkfost wrote, “When such a strong consensus forms, especially after a correction exceeding 60%, it is often a sign that a potential reversal may be developing. This notably happened in April 2025, when XRP reached $1.25, before a bullish recovery eventually triggered a rally that led to a 126% advance.”
Price movement has been mixed. XRP is up 5.7% over the past month and about 27% over the longer period referenced by analysts. The token has underperformed several large-cap tokens including Zcash, Toncoin, Ondo and Internet Computer.
Technically, XRP has formed a symmetrical triangle on chart timeframes used by traders. The pattern shows narrowing trading ranges and increasing indecision as price approaches the triangle apex. A market watcher noted the compression is nearing the apex at the end of May and that a decisive resolution may occur when price reaches that point.
One trader compared XRP’s compression phase to bear-market compressions seen in Toncoin and Ondo, pointing to past breakouts in those assets. The same trader posted a projected target range of $2 to $4 for XRP in a public post based on chart similarities.
Funding rates on Binance have been negative for the extended period. Negative funding means traders holding short positions pay traders holding long positions. The persistent negative funding reflects a dominant short position among traders during the recent rebound.
Historical context: XRP’s 2025 rally followed a period of heavy selling and then a shift in market positioning that coincided with a technical breakout. Market participants are monitoring funding rates, the triangle’s apex and trading volume for signs of how the next directional move may develop.
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