XRP funding rates climbed 266% on Binance while open interest slid toward $399M and long liquidations surged 94%, CryptoQuant data shows, raising funding reset risk.
Someone pushed 64.9 million XRP into Binance on July 7. Outflows the same day ran lighter, around 49 million and change. That gap was the loudest thing on the exchange all week.
The burst capped four days of unusual spot traffic between July 4 and July 8, per a CryptoQuant quicktake from analyst CryptoOnchain, who also posted the chart on X. He reads the XRP funding rates and flow data as aggressive repositioning, not fresh conviction.
The derivatives side was already unwinding before any of it happened.
Source: CryptoQuant
Longs Keep Paying Into a Shrinking Market
Binance funding briefly went negative in late June. Then it snapped back hard, climbing 266% week-over-week to 0.007. New longs are paying a rising premium just to stay in.
Long liquidations tell the other half. They jumped 94% in a week, running 172% above their three-month average, while shorts got flushed at half that pace, down 53%. Somebody keeps buying the dip with borrowed money. The dip keeps winning.
Open interest on the exchange sat above half a billion dollars in mid-June.
The Number Nobody Wants to Watch
On-chain, things look quieter. Active addresses sit 11% below their three-month baseline, the same soft patch flagged in the latest read on XRP wallet activity. Transaction counts have crept up 3 to 4% over the past week and month, though they remain a fifth below trend.
The NVT ratio has eased too, which hints network utilization is stabilizing rather than rotting further. Hints, not proves.
By July 4 that open interest figure had slipped to $431M. Six days later it printed $399 million. Leverage is leaving and has not come back, per the quicktake.
A 70% Drawdown and a Crowded Short
Darkfost, another CryptoQuant contributor, took the longer view on X. Thirty-day aggregated funding on Binance has reached what his analysis calls an extreme threshold of negativity. Roughly 40% of altcoins now trade near their all-time lows.
Source: CryptoQuant
XRP itself is down about 70% from the $2.45 area of July 2025. Bearish funding has held since the start of the year, he wrote. A consensus this strong, formed after a correction that deep, has preceded medium-term reversals before.
April 2025 is his example. XRP touched $1.25 back then while shorts piled in, and the recovery that followed ran 126%. Traders eyeing the six-month expansion setup will decide if the rhyme holds. Whether a funding reset arrives first is the open question.
