Binance’s XRP derivatives market has moved back into moderately positive territory after key funding indicators rose above zero, according to CryptoQuant analyst Arab Chain.

In a CryptoQuant analysis, Arab Chain said Binance’s XRP funding rate increased to about 0.00138, while the 30-day Funding Rate Z-Score reached 0.21. The analyst said the move suggests that long traders are gradually regaining strength in the derivatives market, while overall positioning remains far from overheated.

Binance data shows XRP traders rebuilding long exposure

CryptoQuant data indicates that XRP perpetual futures traders on Binance have been increasing long exposure after a period in which bearish positioning was more dominant. Both the funding rate and the 30-day Z-Score moving above zero point to improving derivatives-market sentiment, Arab Chain said.

At the same time, the analyst noted that the latest readings remain close to neutral. That means long positioning has not reached levels typically associated with excessive leverage or crowded bullish trades.

Funding rates are periodic payments exchanged between long and short traders in perpetual futures markets. When funding is positive, long traders pay short traders, generally reflecting stronger demand for bullish exposure. In perpetual futures, which do not have a fixed expiry date, funding rates are one of the main mechanisms traders watch to gauge whether leverage is leaning toward longs or shorts. The Funding Rate Z-Score compares the current funding rate with its 30-day average to show whether positioning has moved beyond normal levels.

The CryptoQuant chart cited by Arab Chain showed that XRP funding rates have repeatedly moved between positive and negative territory earlier this year as traders adjusted positions during periods of higher volatility. Sentiment weakened in late April and May, when the Z-Score stayed below zero for several weeks.

During that period, funding rates traded below their monthly average, indicating that short sellers held the advantage across Binance’s XRP perpetual futures market.

Moderate funding leaves room for further buying activity

The latest improvement suggests buyers are strengthening their market presence without relying on excessive leverage. Unlike the sharp rise recorded in June, the recent increase in funding rates has been steadier, while the Z-Score remains only slightly above zero.

That distinction matters because moderately positive funding is generally viewed as healthier than an abrupt move into highly positive territory. In such conditions, traders can build long positions without creating the crowded trades that often contribute to large liquidation events.

According to Arab Chain, the 0.21 Z-Score remains well below levels commonly linked to excessive bullish speculation. As a result, the current derivatives structure leaves room for additional buying activity if demand continues to improve.

A further increase in both the funding rate and Z-Score would show stronger long-side participation in XRP derivatives. Stronger spot-market demand alongside improving derivatives data would also reinforce that setup, according to the analysis.

However, a move back below zero in the same indicators would indicate that bearish positioning is regaining influence in Binance’s XRP perpetual futures market.

XRP derivatives positioning remains balanced

Binance’s XRP funding rate and 30-day Funding Rate Z-Score have both returned to positive territory, showing that derivatives traders are again gradually favoring long positions.

Even so, both indicators remain close to neutral. That suggests positioning is still balanced, with room for additional buying activity if demand increases, while also leaving the market sensitive to renewed short-side pressure if the metrics fall back into negative territory.