CryptoQuant Says XRP Funding Rates on Binance Turn Positive After July Volatility
Key Takeaways
- •XRP perpetual futures funding on Binance turned positive, reaching approximately 0.00138.
- •The 30-day Z-score rose to 0.21, placing the funding rate slightly above its recent average.
- •CryptoQuant said the rebound suggests long positions are beginning to regain momentum after a prior negative funding phase.
- •The firm assessed that XRP derivatives positioning shows a slight buyer bias but remains far from extreme levels.
- •A further rise in funding and the Z-score could signal stronger buying momentum, while a return to negative funding could indicate renewed short-driven selling pressure.
CryptoQuant, a cryptocurrency analytics platform, said XRP perpetual futures data on Binance showed a limited improvement in market positioning after volatility in the second half of July.
According to CryptoQuant, the funding rate for XRP contracts moved back into positive territory, reaching approximately 0.00138. The 30-day Z-score was recorded at 0.21, placing the current funding rate slightly above its recent average.
In perpetual futures markets, funding rates are periodic payments exchanged between traders holding long and short positions. A positive funding rate generally indicates that long-position holders are paying short-position holders, while a negative rate indicates the opposite. Traders and analysts often monitor funding rates because they provide a snapshot of positioning in leveraged derivatives markets, though they do not by themselves determine spot-market direction. CryptoQuant said the latest move suggests long positions in the XRP market are beginning to regain momentum.
The XRP funding rate had previously dropped sharply into negative territory. CryptoQuant said that decline indicated investors were temporarily shifting toward short positions, strengthening expectations of selling pressure in the market. However, the rebound in the funding rate to 0.00138, together with the Z-score’s return to positive territory, showed that buyers regained some strength after the recent downward trend.
CryptoQuant also noted that the Z-score of 0.21 remains close to the neutral zone. A Z-score compares the latest funding-rate reading with its recent distribution, so a value near zero indicates that the current level is not far from the 30-day average. The firm said the current data does not point to an excessive concentration of long positions or a speculative rise.
As a result, CryptoQuant assessed that the XRP derivatives market is currently showing a slight bias in favor of buyers, while overall positioning has not yet reached extreme levels.
According to CryptoQuant, a continued rise in the funding rate and Z-score could indicate expanding buying momentum in XRP. Conversely, a move back into negative territory could suggest renewed selling pressure linked to short positions.
