XRP The funding rate of flips negatively – are smart entrepreneurs long or short?

On March 19, Ripple CEO Brad Garlinghouse announced that the company has been cleared by the US Securities and Exchange Commission about an alleged $ 1.3 billion Not registered security offer. Following the news, XRP (XRP) climbed to $ 2.59, but the acquisitions gradually faded as cryptocurrency experienced a 22% correction, which drops to $ 2.02 on March 31.

Investors are concerned that a deeper price correction is near, as the XRP trades 39% below all times high $ 3.40 from January 16. Additionally, XRP Perpetual Futures (opposite swap) suggests strong demand for leveraged bearish bets.

Demand for bearish bets increased amid the collapse of XRP

The funding rate becomes positive when Longs (consumers) are looking for more action and negative when demand for shorts (seller) is dominant. In neutral markets, it usually changes between 0.1% and 0.3% per seven days to offset the exchange risks and capital costs. Conversely, negative funding rates are considered a strong bearish signal.

Currently, the XRP funding rate stands at -0.14% per eight hours, translating at a 0.3% weekly cost. This indicates that bearish entrepreneurs pay for the action, reflecting the weak investor trust in XRP. However, entrepreneurs should also assess XRP margin demand to determine if the bearish sentiment extends beyond the markets in futures.

Unlike derivative contracts, which always require both a buyer and a seller, margin markets allow entrepreneurs to borrow stablecoins to buy spot XRP. Also, Bearish entrepreneurs can borrow XRP to open short positions, expect price collapse.

The XRP long-to-short margin ratio at OKX stands in 2x in favor of Longs (consumers), near its lowest level for six months. Historically, intense confidence has pushed this scale above 40x, while the 5x readings below the long ones were usually seen as bearish signals.

President Trump has strengthened the XRP awareness, setting the way for those who earn the price in the future

Both XRP derivatives and margin market signal bearish momentum, even cryptocurrency gets the media’s basic attention. Noteworthy, on March 2, the US president Donald Trump noted the XRPwith Solana (Sol) and cardano (Ada), as potential candidates for the country’s digital strategic strategic assets.

For a short time, Google search trends for XRP exceeded BTCs between March 2 and March 3. A similar spike occurred on March 19 following Ripple CEO Garlinghouse comments at the expected SEC. As the third-largest cryptocurrency through market capitalization (excluding stablecoins), XRP benefits from early adoption and high liquidity.

Related: Is XRP price around $ 2 a chance or end of the Bull Market? Analysts will weigh

Interactive brokers, a global traditional financial broker, were announced on March 26 Expanding cryptocurrency offerings To include sol, ada, XRP, and Dogecoin (Doge). Since 2021, the platform supported trading in Bitcoin (BTC), Ether (Eth), Litecoin (LTC) pair (LTC), and Bitcoin Cash (BCH) pairs.

The broader adoption of traditional mediators, combined with the increase in Google search trends, further strengthens the XRP position as a leading altcoin. It also sets a stage for increasing flows once the macroeconomic conditions are improved and retail investors are actively looking for altcoins with a strong marketing appeal as successors in traditional finances, such as Ripple.

This article is for general information purposes and is not intended to be and should not be done as legal or investment advice. The views, attitudes, and opinions expressed here are unique and do not necessarily reflect or represent the views and opinions of the cointelegraph.