An analyst is drawing attention to persistently negative funding rates for XRP on Binance as a potential precursor to a sharp price reversal, one that could deliver gains of up to 127% if historical patterns repeat.
Since the start of 2026, funding rates on the exchange have remained negative for most of the period. Analyst Darkfost pointed out a gradual shift among traders toward a broadly bearish stance, one that now appears close to becoming the prevailing market view. When the crowd piles into the same directional bet, the setup often becomes lopsided, and such consensus tends to arrive too late.
The dynamic stands out in XRP’s recent price action. Even after a roughly 60 percent drawdown, participants remain predominantly positioned for further declines rather than a rebound. Extreme sentiment of this sort has rarely proved a reliable guide for following the majority.
The last time a comparable configuration appeared, the token surged from around $1.60 to $3.60, resulting in a nearly 127 percent gain. Nevertheless, the analyst cautions that the broader market backdrop remains challenging for altcoins, urging a measured positioning.
Meanwhile, another observer notes that several technical signals are aligning in a way that could support further upside, though reversals are still possible. The weekly chart shows the MACD hovering near a bullish crossover at recent lows, while signs of aggressive volatility persist.
 
With three days and 14 hours left before the week closes, confirmation is still pending, but the setup looks primed. The analyst wonders aloud whether the move could coincide with the passage of the CLARITY Act, describing the overall weekly picture as particularly compelling.
That said, XRP rose 4.01 percent in the past 24 hours to $1.49, slightly trailing Bitcoin’s 4.11 percent advance. The gain was propelled by concrete adoption developments and robust institutional demand through exchange-traded funds. Rakuten’s integration of the XRP token in Japan provided a clear catalyst for utility, while record inflows into XRP ETFs underscored growing institutional interest.
A short squeeze amplified the move, with 70 percent of recent liquidations stemming from bearish positions. The broader risk-on environment, helped by the reopening of the Strait of Hormuz, offered additional tailwinds.
As it stands, a hold above $1.44 support would keep a retest of $1.54 resistance in sight. A daily close below that level, however, could open the way to a pullback toward the $1.38 Fibonacci retracement, particularly if ETF inflows begin to slow.
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