XRP's Funding Rate Dips, Reaches Lowest Levels Since 2022

In recent months, the XRP funding rate has seen a significant decline following its peak price in 2025, continuing into the new year. Between February and March 2026, the funding rate for XRP has been predominantly negative, indicating a dip in investor confidence regarding this cryptocurrency. Analyst Cryptoinsightuk has shed light on this developing trend and what it could imply for XRP's future.

Key Takeaways

XRP's funding rate has mostly been negative for the past 39 days, indicating investor sentiment.
A similar trend occurred in 2025, leading to a substantial price rally for XRP that surprised many investors.
Historical patterns suggest that low funding rates could indicate a potential price bottom for XRP, with opportunities for price recovery.
Other metrics, including open interest and daily trading volume, have also declined, reflecting reduced market activity.

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XRP Funding Rate Hits Lowest Point Since 2022

The recent observations by Cryptoinsightuk reveal that out of the past 39 days, XRP's funding rate has been negative for 31 days. This tendency means that throughout February, there were only a few days when the funding rate was positive. March appears to be following this same pattern, with investor sentiment remaining cautious.

In the post, the analyst noted that this isn’t the first occurrence of such a trend. A similar situation took place in 2025, where the funding rate remained negative for most of March and April. This led to an unexpected surge in XRP prices that achieved yearly highs, though it did not surpass the all-time highs set in 2018.

The analyst also referred to the downturn in 2022, which came during the collapse of the FTX crypto exchange, causing waves of pessimism across the market. Interestingly, that negativity marked the lowest point for XRP, after which the price began to recover during the following year.

XRP Funding Rates
Source: X

Considering the earlier performance trends, it’s plausible that the current negative funding rate might indicate another price bottom. If this pattern holds, XRP could begin to appreciate in value again. Moreover, these low funding rates imply that a growing number of traders are shorting XRP, which could set the stage for a price bounce.

Data from Coinglass highlights that it’s not only the funding rate that is declining. XRP's open interest has also dropped significantly since 2025, suggesting that traders are becoming less active in the market. Additionally, daily trading volume has fallen sharply, plummeting from a peak of $78.85 billion at the end of 2024 to below $4 billion at the time of this report.

XRP price chart from Tradingview.com
Price struggles against bearish sell-offs | Source: XRPUSDT on Tradingview.com