Bitcoin (BTC) surged above $77,000 following news from the US-Iran front. While the price subsequently fell back to around $76,000, one analyst suggests a significant rise in $XRP is possible.
Darkfost, a CryptoQuant analyst, stated that the funding rate for $XRP is negative.
The analyst noted that the funding rate for $XRP perpetual futures on Binance has remained consistently negative this year, indicating an extreme bearish trend.
This indicates that $XRP investors on Binance are gradually shifting towards a general bearish sentiment and are now approaching a market-wide consensus.
The analyst also noted that the $XRP correction is currently around -60%, with investors continuing to position themselves for further declines rather than expecting a recovery.
“Historically, these kinds of extreme emotional dynamics haven’t always been well-timed signals for following consensus.”
He recalled that after a similar situation was last observed, $XRP triggered a strong upward momentum, rising from approximately $1.6 to $3.6, showing an increase of about 127%.
However, the analyst noted that the overall market environment remains challenging, especially for altcoins, and therefore caution should be exercised in position strategies.
*This is not investment advice.