Positive funding rates suggest long positions’ dominance.
Exchange reserves fall by 50 million XRP, worth $114 million.
Investors accumulate amid expectations of a price rebound.
XRP’s price is under pressure, extending a two-week downtrend that has placed the token in a vulnerable spot.
Yet, a deeper look at on-chain and derivatives market data reveals a contrasting trend.
Traders are actively accumulating XRP, and institutional interest is gaining ground through futures contracts.
With $223 million in open interest on CME within just 10 days of XRP futures launch, the token is seeing new attention despite its price falling below key resistance levels.
CME XRP futures hit $223 million in 10 days
The sharp rise in open interest for XRP futures on CME suggests institutional activity is increasing.
Typically, a spike in open interest is associated with traders taking short positions, potentially signalling bearish sentiment.
However, in this case, the narrative appears to be shifting.
XRP’s addition to CME Futures expands access to large investors, potentially attracting longer-term capital rather than speculative trades.
Data shows that funding rates have remained mostly positive for three weeks, turning negative only once.
This sustained positive rate implies that long positions are dominant, suggesting more traders are betting on a price rise than a fall.
Exchange reserves drop by 50 million XRP
At the start of the month, XRP balances on centralised exchanges rose, indicating selling pressure.
But over the past two weeks, those reserves have declined by around 50 million XRP, valued at over $114 million.
This trend reversal indicates strong outflows, often associated with accumulation.
Withdrawals from exchanges typically mean that traders are shifting their tokens to cold storage or long-term holdings.
In XRP’s case, this suggests buyers are positioning themselves ahead of a potential rebound, possibly driven by FOMO (fear of missing out) due to low current prices.
XRP is trading at $2.27 with strong support
At the time of writing, XRP is trading at the 2.27 support level.
The two-week downtrend has so far capped upward movement, and a break below the support could push prices down to $2.12 — the next key level.
However, if the $2.27 level holds and demand from both institutional and retail buyers continues, XRP could mount a recovery.
A successful rebound could send the token towards $2.38, validating the recent futures market activity and accumulation behaviour.
This would confirm growing investor interest and may signal the end of the current correction phase.
On the other hand, a loss of support could prolong the downtrend, invalidating the optimistic outlook and delaying any price recovery.
While XRP’s short-term technical indicators remain weak due to its declining price, broader market signals are more positive.
Rising futures open interest, positive funding rates, and declining exchange reserves are usually precursors to bullish price action.
These signals suggest that a growing number of investors expect XRP to recover soon, with current levels viewed as an attractive entry point.
