XRP price recovery struggles as negative funding rate signals bearish bets
XRP technical indicators reflects broader weakness in price action
XRP price movement has faced mounting pressure over the past few weeks, with its price experiencing a continued decline that has spanned six consecutive days.
As of yesterday, XRP fell to $2.026, marking a three-week low. While it managed to open the second quarter of 2025 after a slight rebound to $2.09, its recovery has shown a 1.7% gain through the Asian and European sessions to reach $2.125. However, with XRP still trapped in a descending triangle pattern over the past four months, its outlook remains largely bearish, driven by both technical indicators and market sentiment.
One key market indicator that reinforces this bearish outlook is the funding rate on XRP perpetual futures. Currently standing at -0.14% per eight hours, the funding rate reflects a growing demand for leveraged bearish bets. This negative funding rate is considered a strong bearish signal, indicating that market participants are more inclined to bet against XRP. The negative funding rate translates into a 0.3% weekly cost, further suggesting that confidence in the asset’s future price performance is weak.
XRP price outlook: Daily and 4-hour RSI suggest limited upside potential
XRP price dynamics (March - April 2025). Source: TradingView
XRP technical indicators also reflects broader weakness in price action. Given the asset’s daily and 4-hour Relative Strength Index (RSI) remaining in bearish territory, this signals that further downside could be imminent, especially as the cryptocurrency faces resistance around the $2.26 level. If this resistance holds, XRP may struggle to sustain its recovery and could instead revisit March’s low of $1.9. The pressure from these technical indicators aligns with broader market sentiment, which suggests that investors are anticipating a deeper correction.
As XRP continues to face strong technical resistance and investor sentiment remains weak, the path of least resistance appears to be further downside. Traders will be closely watching the $2.26 resistance level and the possibility of a breakdown below the March low at $1.9.
XRP initially surged after the SEC dropped its appeal but quickly erased those gains. The RSI fell into oversold territory as selling pressure intensified.
