XRP funding rates on Binance have climbed to their highest level in more than a year, even as the cryptocurrency struggles to recover from a 30% correction and spot XRP exchange-traded funds record $10.4 million in net outflows.
Summary
- XRP’s 30-day cumulative funding rate on Binance has climbed to approximately 0.18%, its highest level since October 2025, despite the cryptocurrency losing around 30% during its recent correction.
- CryptoQuant analyst Darkfost warned that similar periods of elevated funding rates have previously appeared near XRP price peaks, while negative readings have often coincided with market bottoms.
- Spot XRP ETFs recorded approximately $10.4 million in net withdrawals, equivalent to 9.37 million XRP, as investors pulled money from the funds despite continued bullish positioning among Binance futures traders.
- XRP previously rebounded 53% from around $0.70 during the summer of 2026, with funding rates recovering as the rally progressed and traders became increasingly optimistic.
CryptoQuant analyst Darkfost said in a November 10 assessment that the 30-day cumulative funding rate for XRP perpetual futures had reached approximately 0.18%, a level last seen in October 2025, several months after XRP reached a record high of $3.55.
The latest reading suggests traders are maintaining bullish positions despite XRP’s recent decline, a situation the analyst warned could leave the market vulnerable if prices continue falling.
XRP funding rates return to October 2025 levels
According to the CryptoQuant chart shared by Darkfost, XRP’s cumulative funding rate has recovered considerably since the middle of 2026, when bearish sentiment dominated the derivatives market.
XRP funding rates. Source: X/Darkfost.
The indicator measures the rolling 30-day sum of funding rates on Binance, showing how sentiment among perpetual futures traders has changed over time.
Funding payments are exchanged between traders holding long and short positions to keep perpetual futures prices close to the underlying spot market.
When funding rates are positive, traders holding long positions generally pay those holding short positions. Negative rates indicate the opposite, with short sellers paying traders who are betting on a price recovery.
The latest cumulative reading is particularly notable because XRP has already lost around 30% during its recent correction, yet derivatives traders have continued to favor long positions.
Darkfost pointed to October 2025 as the previous occasion when the indicator reached comparable levels. XRP had already retreated from its earlier record by then, although bullish positioning remained elevated.
The chart shows that funding rates subsequently declined through late 2025 before turning negative during several periods in the first half of 2026.
By March, the cumulative reading had fallen below negative 0.20%, while another period of deeply negative funding emerged between May and July.
XRP’s previous rebound offers a warning for bullish traders
The analyst highlighted XRP’s recovery during the summer of 2026, when the cryptocurrency rebounded 53% after falling to approximately $0.70.
Funding rates began recovering during the rally, but the strongest improvement in sentiment came after XRP had already made substantial gains.
Darkfost noted that similar behavior has appeared elsewhere in the historical chart, with periods of strongly positive funding often coinciding with price peaks and negative readings appearing near market bottoms.
Although the pattern does not establish that another reversal will occur, the analyst warned that crowded bullish positioning can leave traders vulnerable when prices move against their expectations.
Individual funding rates remained positive on Binance on November 10, with one market tracker recording a rate of approximately 0.0068% per eight hours. Long traders were therefore continuing to pay short traders to maintain their positions.
The 30-day cumulative reading differs from the funding fee charged during a single settlement period, since it combines multiple payments over the preceding month.
Spot XRP ETFs record $10.4 million in withdrawals
Spot XRP ETFs recorded approximately $10.4 million in net outflows, equivalent to 9.37 million XRP, according to Darkfost, who described the session as one of the weakest for the investment products this year.
The withdrawals followed an uneven October, when US spot XRP ETFs ended a 13-week inflow streak with $1.84 million in net withdrawals during the October 12–16 trading week.
Despite that weekly decline, the funds attracted $18.83 million during October as a whole, indicating that demand for XRP investment products had remained positive over the full month.
XRP had meanwhile recovered toward $1.30 in early November after losing nearly 16% during October. The cryptocurrency traded near $1.27 on November 4, having started the month around $1.25.
The first trading session of November brought approximately $529,510 in ETF withdrawals, before the considerably larger redemptions reported in Darkfost’s latest assessment.
The latest withdrawals suggest that demand through regulated investment products has weakened at a time when leveraged traders on Binance are continuing to maintain bullish exposure.
Darkfost said cumulative funding rates and ETF flows were both worth monitoring when assessing potential entry points, particularly because derivatives sentiment can remain bullish even after prices have begun to decline.
