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.
