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XRP price is trading below $1.49 following three consecutive days of declines that saw the token break key support at $1.50, despite a modest bounce lifting it from session lows. Data from CoinGlass indicates a long-to-short ratio of 0.975, suggesting short positions slightly outnumber longs, while the funding rate remains positive at 0.008%. This rate determines whether long or short traders pay a periodic fee to hold perpetual futures positions.
XRP Long Short Ratio, Coinglass
This combination forms the core of the current issue. Traders are still paying to maintain long positions, yet the spot price has not moved sufficiently to reward this bet. The disconnect between heavy spot selling and futures demand creates a setup that tends to unwind rapidly once a critical level gives way.
A long-to-short ratio of 0.975 is not decisively bearish. It sits close enough to 1.0 to indicate near-balanced positioning rather than a market leaning heavily in either direction.
XRP Funding Rate, Coinglass
Funding rates tell a more nuanced story. A positive rate indicates that demand for long exposure in crypto derivatives is strong enough that longs are compensating shorts to hold their positions, which typically signals conviction that prices will rise.
However, this dynamic works both ways: if prices fall further, those same leveraged longs become forced sellers. A positive funding regime built on thin spot demand can flip into a liquidation cascade more quickly than one supported by genuine accumulation.
CryptoQuant’s summary data highlighted overheating conditions across both XRP’s spot and futures markets, alongside sell-side dominance in futures. This means sellers have retained the upper hand in derivatives even as funding remains positive. This is the missing piece: positive funding shows traders are willing to hold bullish exposure, but it has not yet translated into enough buying pressure to absorb futures selling and push through resistance.
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XRP Price and the $1.37 Support Level
The daily chart still leans bullish on a longer timeframe. XRP held above its 50-day exponential moving average (EMA) near $1.365 and its 200-day EMA near $1.369 throughout the three-day slide, with the 100-day EMA sitting lower at $1.307 as a secondary reference.
Momentum has cooled rather than reversed. The Relative Strength Index (RSI) sat near 55, close to neutral, and the Moving Average Convergence Divergence (MACD) flattened around zero. This pattern is consistent with consolidation following an earlier advance rather than an active breakdown.
The most critical level sits at $1.37, where the 50-day and 200-day EMAs converge into a single support band. A clean break below this zone opens the door to the $1.30 area, and a deeper slide would eventually bring the $1.00 psychological level into play, though XRP would need to fall substantially before that becomes the immediate focus. On the upside, reclaiming the $1.574 resistance level is the trigger that would strengthen the case for a move toward $1.90.
What Happens Next for XRP?
Two scenarios frame the near-term path. If XRP holds the $1.37 zone, the market remains in a consolidation phase where positive funding continues to reflect trader appetite for long exposure. However, this alone will not confirm a breakout without a corresponding rise in open interest and spot volume.
If XRP price instead reclaims $1.574, the technical case for a run toward $1.90 becomes meaningfully stronger. This move would likely force shorts to cover their positions into strength. The alternative is a sustained break below $1.37, which shifts focus to $1.30 as the next line of defense, with $1.00 as the deeper level only if that support also fails.
Either way, the current setup leaves no room for complacency on either side of the trade. Near-balanced positioning combined with positive funding and futures sell-side dominance creates a fragile mix. The next move in spot price will do more to settle the argument than another shift in the long-short ratio.
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The post XRP Price in Danger: Positive Funding Masks a Fragile Setup appeared first on Cryptonews.
