XRP traders on Binance are showing their strongest bullish positioning in more than a year, even as the token remains under pressure from a sharp correction and spot XRP ETFs record fresh outflows.
The 30-day cumulative funding rate for XRP perpetual futures on Binance has climbed to around 0.18%, its highest level since October 2025.
At the same time, XRP has fallen roughly 30% from recent highs, while spot XRP ETFs have posted about $10.4 million in net withdrawals.
The contrast suggests leveraged traders remain optimistic even as demand through regulated investment products has weakened.
XRP funding rates return to October 2025 levels
CryptoQuant analyst Darkfost said XRP’s 30-day cumulative funding rate on Binance reached approximately 0.18% on November 10.
The last time the indicator was near similar levels was in October 2025.
Funding rates are payments exchanged between traders holding long and short positions in perpetual futures markets.
They are designed to help keep perpetual futures prices close to the underlying spot price.
When funding rates are positive, traders holding long positions generally pay traders holding short positions.
When funding rates turn negative, short sellers generally pay long traders.
A strongly positive reading therefore shows that traders are paying a premium to maintain bullish exposure.
Bullish futures positioning remains strong despite XRP correction
The latest reading is notable because XRP has already lost around 30% during its recent correction.
Normally, a large decline can reduce bullish sentiment and push funding rates lower.
Instead, Binance traders have continued favoring long positions.
That means many leveraged traders are still betting on a recovery even after the price has weakened.
Darkfost warned that this type of crowded bullish positioning can increase risk if XRP continues falling.
High funding rates can create liquidation risk
Positive funding is not automatically bearish.
However, very high funding can become a warning sign when too many traders are positioned in the same direction.
If XRP suddenly falls, leveraged long positions may be forced to close.
Those liquidations can create additional selling pressure.
The result can be a feedback loop where falling prices trigger liquidations, which then push prices even lower.
This is one reason analysts monitor funding rates alongside price action.
October 2025 provides a historical comparison
Darkfost pointed to October 2025 as the last period when XRP’s cumulative funding rate reached comparable levels.
At that time, XRP had already pulled back from its earlier record high of $3.55.
Despite the decline, derivatives traders remained heavily positioned for further upside.
Funding rates later weakened through the end of 2025 and eventually turned negative during several periods in early 2026.
The analyst sees that historical pattern as a reason for traders to remain cautious.
Negative funding has previously appeared near XRP lows
The CryptoQuant chart shows several periods when XRP funding rates became deeply negative.
By March 2026, the 30-day cumulative reading had fallen below -0.20%.
Another period of sharply negative funding appeared between May and July.
Negative funding suggests short positions had become dominant enough that short traders were paying long traders.
Historically, extreme bearish positioning can sometimes appear close to market bottoms.
However, that pattern does not guarantee that future negative readings will mark exact turning points.
XRP rebounded 53% from its summer low
XRP provides a useful recent example.
During the summer of 2026, the token recovered approximately 53% after falling toward $0.70.
Funding rates were deeply negative around the earlier stages of that decline.
As XRP began recovering, funding gradually improved.
However, the strongest bullish sentiment appeared only after the token had already risen substantially.
This is the pattern Darkfost says traders should keep in mind.
Bullish sentiment often arrives late
The relationship between funding rates and price highlights a common feature of derivatives markets.
Traders often become most optimistic after prices have already risen.
Similarly, extreme bearish positioning can develop after a major decline.
That means funding rates can sometimes act as a contrarian signal when sentiment becomes too one-sided.
But they should not be used alone.
Price structure, spot demand, ETF flows and broader market conditions also matter.
Binance funding remains positive on shorter time frames
Individual XRP funding rates were also positive on Binance on November 10.
One market tracker recorded a rate of approximately 0.0068% per eight-hour funding interval.
That means long traders were continuing to pay short traders to maintain their positions.
This shorter-term rate is different from the 30-day cumulative figure.
The cumulative indicator adds together many funding periods to show how positioning has evolved over a longer window.
Spot XRP ETFs record $10.4 million in outflows
While derivatives traders remain bullish, spot XRP investment products are showing weaker demand.
Spot XRP ETFs recorded approximately $10.4 million in net withdrawals.
That was equivalent to roughly 9.37 million XRP, according to Darkfost.
The outflows represent one of the weaker sessions for the products this year.
They also highlight the difference between leveraged futures positioning and demand through regulated spot investment products.
ETF investors and futures traders are sending different signals
The latest data presents a clear divergence.
Binance futures traders are paying to maintain long positions.
At the same time, investors are withdrawing money from spot XRP ETFs.
These two groups may have different time horizons and strategies.
Futures traders may be positioning for a short-term rebound.
ETF investors may be reducing longer-term exposure or adjusting portfolios for broader risk reasons.
The data does not necessarily mean one group is correct and the other is wrong.
XRP ETF flows were mixed during October
The latest ETF withdrawals follow an uneven October.
U.S. spot XRP ETFs ended a 13-week inflow streak during the October 12–16 trading week.
The products recorded approximately $1.84 million in net withdrawals during that period.
However, October as a whole still finished with about $18.83 million in net inflows.
That means investor demand remained positive over the full month even though some individual weeks were negative.
November ETF outflows are getting larger
The first trading session of November brought around $529,510 in XRP ETF withdrawals.
The latest $10.4 million figure is substantially larger.
That suggests selling pressure through regulated investment products has increased.
Whether the trend continues will be important for XRP’s recovery prospects.
A return to consistent ETF inflows would provide stronger evidence of spot demand.
Continued withdrawals could leave the market more dependent on leveraged traders and crypto-native buyers.
XRP is still recovering from October weakness
XRP entered November after losing nearly 16% during October.
The token traded near $1.27 on November 4 after starting the month around $1.25.
Although XRP has attempted to recover, it remains well below earlier highs.
This makes the current derivatives optimism particularly important.
If traders remain heavily long while the spot price fails to recover, liquidation risk could increase.
Funding rates and price should be read together
A high funding rate alone does not tell investors where XRP will trade next.
The price can continue rising even when funding is expensive.
It can also fall while funding remains positive.
The most useful signal comes from comparing sentiment with actual price performance.
If XRP begins making higher highs while funding remains manageable, bullish positioning may be supported by genuine demand.
If the price keeps weakening while funding stays elevated, the market may be becoming increasingly fragile.
Spot demand matters more for a sustainable rally
Futures can move prices in the short term, especially during periods of heavy leverage.
But a longer-lasting recovery generally benefits from strong spot demand.
Spot buyers purchase the underlying XRP rather than using derivatives to gain exposure.
ETF flows are one way to measure part of that demand.
Exchange spot volumes and onchain activity provide additional information.
A rally supported mainly by leverage can reverse quickly when traders begin closing positions.
Crowded longs can accelerate volatility
When many traders are positioned long, a relatively small price decline can have an outsized effect.
Leveraged positions require traders to maintain enough collateral.
If XRP falls below certain levels, exchanges can automatically liquidate positions.
Forced selling can then push the price down further.
This does not mean a liquidation cascade will occur.
It simply means the market becomes more sensitive when bullish leverage is unusually high.
What would reduce the risk?
One positive development would be stronger spot buying.
If XRP rises because investors are purchasing the underlying token rather than only adding leveraged futures positions, the recovery would have a stronger foundation.
Lower funding rates could also reduce the risk of overcrowding.
Funding does not need to turn negative.
Even a move back toward more neutral levels could indicate that speculative pressure has cooled.
ETF inflows would strengthen the bullish case
A return to positive XRP ETF flows would also support the recovery.
ETF inflows represent capital entering regulated spot investment products.
If those inflows appear alongside positive price action, it would suggest broader investor demand is improving.
That would create a different market structure from one where futures traders remain heavily long while ETF investors continue withdrawing capital.
What would weaken the setup?
Several developments could increase downside risk.
If XRP continues falling while funding remains elevated, leveraged traders could come under additional pressure.
Persistent ETF outflows would also weaken the spot-demand story.
A broader crypto market decline could add further pressure.
In that scenario, bullish futures positioning could quickly turn into forced selling.
Funding extremes are signals, not guarantees
Darkfost’s analysis highlights a historical relationship between extreme funding and price turning points.
But market indicators do not repeat perfectly.
Positive funding can remain elevated for long periods during strong bull markets.
Negative funding can persist during prolonged declines.
The indicator is most useful as part of a broader market framework.
Traders should consider price action, liquidity, ETF flows and risk conditions alongside funding.
What to watch next
The next few sessions could provide a clearer picture of whether XRP’s bullish derivatives positioning is sustainable.
Key indicators include:
- Binance funding rates
- 30-day cumulative funding
- Spot XRP ETF flows
- XRP spot price
- Futures open interest
- Liquidation activity
- Exchange spot volumes
If funding remains elevated while ETF outflows continue, the divergence between derivatives and spot demand will become more pronounced.
If ETF inflows return and XRP price strengthens, the current long positioning could look more sustainable.
Final thoughts
XRP’s derivatives market is sending a strongly bullish signal, but the spot market is telling a more cautious story.
The 30-day cumulative funding rate on Binance has climbed to around 0.18%, its highest level in more than a year.
At the same time, XRP remains roughly 30% below recent highs and spot ETFs have recorded about $10.4 million in net withdrawals.
That combination creates both opportunity and risk.
If spot demand improves, the bullish positioning could support a stronger recovery.
If XRP continues weakening, crowded long positions could amplify the downside.
For now, the key question is whether real buying demand can catch up with the optimism already visible in the futures market.
