CryptoQuant, a cryptocurrency analysis platform, reported that XRP perpetual futures data on Binance indicated a limited improvement in investor sentiment.
According to CryptoQuant, the funding rate for XRP contracts has risen back into positive territory after the volatility experienced in the second half of July. The funding rate reached approximately 0.00138, while the 30-day Z-score was recorded at 0.21.
A Z-score above zero indicates that the current funding rate is slightly above the recent average. The analysis firm stated that this suggests long positions in the XRP market are beginning to regain momentum.
The funding rate had previously fallen sharply into negative territory. This movement indicated that investors were temporarily shifting to short positions, strengthening expectations of selling in the market. However, the rise of the funding rate back to 0.00138 and the return of the Z-Score to positive territory revealed that buyers have regained strength after the recent downward trend.
However, CryptoQuant noted that the Z-Score of 0.21 is still close to the neutral zone. The current data does not indicate an overconcentration of long positions or a speculative rise.
Therefore, it is assessed that the XRP derivatives market is currently showing a slight bias in favor of buyers, but market positioning has not yet reached extreme levels.
According to CryptoQuant, the continued rise in funding rate and Z-score could indicate expanding buying momentum in XRP. Conversely, a return to negative territory could suggest renewed selling pressure stemming from short positions.
*This is not investment advice.
