Crypto analyst Darkfost has highlighted the reason why the XRP value may quickly witness a bullish reversal and probably attain new native highs. This comes amid bearish sentiment available in the market, which on-chain analytics platform Santiment stated may set the stage for a reversal within the altcoin’s value.
Why The XRP Worth May Quickly See A Bullish Reversal
In a CryptoQuant weblog submit, Darkfost acknowledged that unfavourable funding charges sign a possible XRP value reversal. The analyst famous that the altcoin is presently buying and selling round 47% beneath its all-time excessive (ATH) set in July final 12 months. Moreover, the altcoin is claimed to have naturally entered a part of distribution and correction after a achieve of over 600% since November 2024.
Darkfost assured that such a motion is wholesome after such a powerful rally for the value. He additional remarked that what stands out is the timing of the bearish consensus, because it didn’t kind on the prime however reasonably throughout a drawdown of greater than 50%. Now, there are predominantly quick positions on XRP, with funding charges on Binance largely unfavourable since December, indicating that leveraged quick positions have the higher hand.
The analyst famous that traditionally, the market tends to maneuver in opposition to a late consensus. As such, whereas the buildup of shorts creates short-term promoting strain, it additionally builds latent shopping for strain. Darkfost stated that if the XRP value begins to rise, these quick positions might be liquidated, fueling the upward transfer.
He revealed {that a} comparable sample has occurred for the token value since 2024. The primary was between August and September 2024, and the second was throughout the April 2025 correction, when funding charges turned unfavourable for a interval earlier than a bullish rebound occurred. The analyst acknowledged that this value rebound was as a consequence of a shift in investor sentiment and funding charges returning to optimistic territory.
A Rally Starter For XRP
In an X submit, Santiment acknowledged that XRP merchants are exhibiting main FUD, which they claimed is normally a rally starter for the XRP value. The on-chain analytics platform revealed that the altcoin has fallen into ‘Excessive Worry’ territory, with small retail merchants turning into pessimistic in regards to the token after a 19% decline from its current excessive on January fifth.
Santiment famous that traditionally, this stage of bearish commentary has led to cost rallies. That is based mostly on the idea that costs transfer in the other way to retail’s expectations as a rule. The altcoin has dropped once more following the current decline within the broader crypto market, led by Bitcoin. BTC fell beneath $87,000 yesterday on the again of U.S. political tensions, authorities shutdown danger, and forward of this week’s FOMC assembly.
On the time of writing, the XRP value is buying and selling at round $1.88, down within the final 24 hours, in accordance with information from CoinMarketCap.
Featured picture from Shutterstock, chart from Tradingview.com
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