Is XRP Set for Another Price Surge? Signs of Buy Pressure Indicate Potential Short Liquidations

XRP’s funding rates on Binance have been reflecting trends observed before significant price recoveries since 2024.

Key points:

The accumulation of short positions (negative funding) has preceded price upswings.
Holding within the range of $1.80 to $2.00 and reclaiming $2.22 would bolster the bullish outlook.

Negative funding has prompted short squeezes since late 2024

Funding rates on Binance have mainly remained negative over the last two months, indicating that many leveraged traders are betting against XRP’s price, incurring costs to maintain their short positions.

XRP Ledger funding rates on Binance. Source: CryptoQuant/Darkfrost

This bearish sentiment among traders was shaped after XRP encountered around a 50% decline in spot prices from its peak of $3.66, reached in July 2025. However, on-chain analyst Darkfrost suggests that this might backfire against short-sellers soon.

“Accumulating shorts generates temporary selling pressure, yet it also creates latent buying pressure.” - Darkfrost

XRP bulls need to uphold the $2 support level

Currently, XRP has shown a slight rebound after reaching the lower boundary of its year-long sideways trend, finding support in the $1.80-$2.00 range.

XRP/USD three-day chart. Source: TradingView

This zone previously catalyzed a remarkable rally to $3.66 in April 2025. The $2 mark serves as a crucial psychological barrier in the near to medium term.

In previous insights, Glassnode has identified that retests of the $2 level since early 2025 correlated with significant weekly realized losses, indicating that many investors opted to sell and minimize their losses instead of increasing their stake.

XRP realized loss vs. price. Source: Glassnode

XRP bears are likely to target the 200-week EMA around $1.40 should it fail to re-establish the 50-week EMA at $2.22 as a support level.

XRP/USD weekly chart. Source: TradingView

Darkfrost’s theory about latent buying pressure could lose credibility if XRP decisively drops below the $1.80-$2.00 zone.

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