CryptoQuant, a cryptocurrency analysis platform, reported that $XRP Binance perpetual futures data indicated limited improvement in investor sentiment.
According to CryptoQuant, the funding rate for $XRP Contracts returned to positive territory after the volatility experienced in the second half of July. The funding rate reached around 0.00138, while the 30-day Z-score was recorded at 0.21.
A Z score greater than zero indicates that the current funding rate is slightly higher than the recent average. The analyst firm said this suggests long positions in the $XRP The market is starting to regain strength.
The funding rate had previously fallen into negative territory. This move indicates that investors are temporarily turning to short positions, thereby reinforcing expectations of selling in the market. However, the rise in the funding rate to 0.00138 and the return of the Z-Score to positive territory revealed that buyers have regained strength after the recent downward trend.
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However, CryptoQuant noted that the Z-Score of 0.21 is still close to the neutral zone. Current data does not indicate an overconcentration of long positions or a speculative rise.
Therefore, it is estimated that the $XRP Derivatives markets currently display a slight bias towards buyers, but market positioning has not yet reached extreme levels.
According to CryptoQuant, the continued rise in the funding rate and Z-score could indicate growing buying momentum in $XRP. Conversely, a return to negative territory could suggest renewed selling pressure from short positions.
*This does not constitute investment advice.