XRP (XRP) has climbed 5.7% over the past month, underperforming all other top-five large-cap assets except stablecoins.
The modest rise also falters against sharper rallies in Zcash (ZEC), Toncoin (TON), Ondo (ONDO), and Internet Computer (ICP). However, an on-chain analyst has flagged a key signal that could mark a turning point.
XRP Price Flashes Reversal Signal as Funding Rates Stay Bearish
In a post on X (formerly Twitter), analyst Darkfost explained that the crypto market has undergone a notable shift since early February.
The Total3 index, which excludes Bitcoin (BTC), Ethereum (ETH), and stablecoins, has recovered roughly $125 billion after experiencing a drawdown of more than $544 billion.
Despite the rebound, traders keep leaning short. The analyst observed that on Binance, XRP’s funding rates have “maintained a bearish bias” for nearly 3 months, the longest such stretch in recent history.
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The bearish bias persists despite XRP’s 27% price appreciation over the same period. According to the analyst,
“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.”
Technical Picture Splits Analysts
On the technical front, one analyst noted similarities between XRP and the bear market compression phases seen in Toncoin and Ondo. According to the analyst, both assets recorded strong breakouts, suggesting XRP could be positioned for a similar move.
However, not everyone is convinced. Another market watcher highlighted XRP’s symmetrical triangle. The pattern signals indecision, but doesn’t predict direction on its own.
XRP’s price is nearing the apex, suggesting a decisive break is close. An upside breakout could fuel momentum, while a breakdown may invite more selling.
“The longer the current XRP compression phase persists, the closer we approach the apex toward the end of May, increasing the likelihood of a decisive resolution. The range continues,” the analyst posted.
XRP’s next leg hinges on whether buyers can break the triangle’s resistance, even as funding remains skewed short.
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