Insights into the Potential Bullish Reversal for XRP
Our editorial team, comprising esteemed industry experts and experienced editors, is committed to providing reliable and insightful content. Please note this article contains advertising disclosures.
Understanding the Potential XRP Price Reversal
Cryptocurrency analyst Darkfost has shed light on the possibility of XRP experiencing a bullish reversal, which could drive the altcoin to new local highs. This optimistic outlook comes amidst prevailing bearish trends in the market. According to on-chain analytics platform Santiment, these conditions could pave the way for a price surge in XRP.
Advertisement Banner
Examining the Signs of a Bullish Reversal
In a detailed post on the CryptoQuant blog, Darkfost emphasized that negative funding rates may indicate an impending reversal in XRP’s price trajectory. Currently, XRP is trading at approximately 47% below its peak price achieved in July of the previous year. The altcoin has undergone a natural phase of distribution and correction following a remarkable surge of over 600% since November 2024.
Darkfost asserts that such market movements are healthy post a substantial rally. He points out that the bearish sentiment emerged not at the peak, but during a significant downturn of over 50%. Presently, the market is dominated by short positions, with negative funding rates prevailing on Binance since December, indicating a tilt towards leveraged short positions.
Historical Market Trends
According to historical data, markets often move contrary to the consensus formed at the late stage. While the accumulation of shorts may create immediate selling pressure, it simultaneously builds potential for latent buying pressure. Darkfost suggests that as XRP’s price begins to rise, these short positions could face liquidation, thereby propelling the price upwards.
Darkfost highlighted a recurring pattern for XRP since 2024. Notably, similar scenarios unfolded between August and September 2024 and during the April 2025 correction. During these periods, negative funding rates were followed by a bullish rebound as investor sentiment shifted and funding rates turned positive.
FUD as a Potential Catalyst for XRP Rally
In a recent post on X, Santiment highlighted that the current Fear, Uncertainty, and Doubt (FUD) surrounding XRP among traders often precedes price rallies. The on-chain analytics platform noted that XRP has entered an ‘Extreme Fear’ zone, with retail traders becoming increasingly pessimistic following a 19% drop from its recent peak on January 5th.
Historically, such levels of bearish sentiment have led to price surges, based on the observation that markets often move contrary to retail traders’ expectations. The recent decline in the broader cryptocurrency market, triggered by Bitcoin’s drop below $87,000 due to U.S. political tensions and the looming risk of a government shutdown, has also affected XRP.
At the time of this analysis, XRP is trading at approximately $1.88, as per CoinMarketCap data.
Editorial Integrity and Process
At Bitcoinist, our editorial process is meticulously crafted to provide well-researched, accurate, and unbiased content. We adhere to stringent sourcing standards, ensuring every piece undergoes a thorough review by our team of leading technology experts and seasoned editors. This commitment guarantees the integrity, relevance, and value of our content for our readers.
“`
