Peter Smith
⬤ XRP's derivatives market reveals that the open interest weighted funding rate has been mostly negative since the year started, reflecting ongoing bearish sentiment in perpetual futures trading. XRP OI-weighted funding rates haven't seen steady positive readings, with the data moving below zero even as the price dropped. The chart shows XRP price around $1.37 on March 3, 2026, with funding rates slightly negative, highlighting the gap between price movement and funding sentiment.
⬤ Open interest weighted funding rates blend both open interest levels and funding rate payments, giving a clearer picture of market sentiment than basic funding rate measures alone. When weighted funding rates turn negative, shorts are essentially getting paid by longs to hold their perpetual futures positions, indicating that bearish positioning controls the market. For XRP, the chart displays extended periods of negative OI weighted funding, especially from late January into early March, matching the downtrend from earlier peaks above $3.
⬤ This ongoing negative funding environment fits with broader derivatives patterns seen recently. XRP Slides to $1.81 as Open Interest Climbs Despite Negative Funding Signals examines how open interest can grow even as funding turns negative, driving volatility and strengthening bearish pressure. Another connected story, XRP Sees Short Interest Surge to 576M Coins as Funding Goes Negative, describes situations where funding and sentiment indicators shift into negative territory amid high short exposure. Additionally, XRP Futures Market Resets as Leverage Unwinds shows how funding rate flips and open interest drops can signal major resets in derivatives positioning.
⬤ The continued negative OI weighted funding rates alongside XRP's price near $1.37 matters because it shows how sentiment and derivatives positioning may be aligning with downward price pressure. Weighted funding offers one view into trader speculation, and extended periods below zero suggest bearish positioning has dominated. Watching changes in this metric alongside open interest trends and price action could provide clues about when sentiment starts to shift.
Peter Smith
