XRP (XRP) has climbed 27% to trade near $1.41, recovering from a 60% correction, even as derivatives traders on Binance maintain a record bearish stance against the token for nearly three months.
"This marks the longest and most negative stretch in recent history for the token," analyst Darkfost noted, according to Blockonomi. Coinglass data shows the persistent negative funding rates, where short-sellers pay a premium to maintain their bearish positions, creating a rare divergence between the positive spot price action and deeply negative derivatives sentiment.
The price has held firm due to significant institutional buying. Over the last week, sellers on Binance offloaded a net $35 million in XRP, yet the price failed to break below its $1.40 support. Data from 24/7 Wall St. indicates that spot XRP ETFs absorbed approximately $28 million of the selling, with the remainder picked up by institutional whale accounts moving coins off exchanges. CryptoQuant data confirms this, showing whale inflows to Binance hitting a four-year low, a sign of accumulation.
This institutional demand creates a tense standoff and a potential short-squeeze scenario. A similar market setup in April 2025, with deeply negative funding rates, preceded a 126% price rally. If buyers can push XRP above the key resistance at $1.47, it could force bearish traders to close their positions, potentially driving the price toward the next high-volume zones at $1.80 and $2.10.
While institutional and ETF demand for XRP remains robust, on-chain data points to waning retail interest. According to Glassnode data cited on May 8, the number of daily new addresses on the XRP Ledger has fallen by 85% since December, from around 18,000 to just 2,700, the lowest level in 18 months.
This decline in network growth and user activity suggests the current rally is not driven by broad retail speculation but rather by a smaller number of large, well-capitalized players. The dynamic pits strong, patient institutional buying against a crowded field of bearish derivatives traders, leaving the price coiled between the solid $1.40 support and the critical $1.47 resistance. The broader crypto market remains a key factor, with Bitcoin holding near $80,000, providing a stable backdrop for potential altcoin moves.
This article is for informational purposes only and does not constitute investment advice.
