Analyst Identifies The Reason Behind XRP’s Improved Bullish Momentum

• XRP is experiencing a price turnaround reflected in its price action over the past month.
• An analyst identified an improved funding rate as a signal for XRP’s potential turnaround.
• Technical indicators suggest XRP is in a neutral zone and could trend either way.

According to TradingView data, XRP’s bearish momentum has faded over the past month, since the cryptocurrency declined to $1.0072, marking its lowest price since November 2024. The altcoin’s trend throughout July 2026 reflected the formation of higher lows, suggesting an exhaustion of the bearish pressure.

What Does XRP’s Funding Rate Say?

Besides XRP’s price action, crypto analysts have identified other elements indicating an improvement in the crypto asset’s bullish momentum. According to a CryptoQuant expert, the funding rate data for XRP contracts on Binance indicates a return of positive momentum in the perpetual contracts market. 

The expert based his analysis on XRP’s recent price behavior, particularly since the second half of July. He noted that the cryptocurrency’s funding rate reached approximately 0.00138, while the 30-day Z-Score registered 0.21, reflecting a slight move above its recent average. According to him, the funding rate declined sharply into negative territory ahead of the current reading, suggesting a temporary shift in traders’ positioning toward short positions.

The funding rate’s return to 0.00138, coupled with the Z-Score’s resurgence, climbing above zero, indicates that long positions are regaining momentum. Nonetheless, the analyst acknowledged the current Z-Score reading of 0.21 as neutral, noting that it does not indicate overextension or excessive speculation in long positions.

XRP From a Technical Perspective

Although XRP’s daily chart recorded higher lows throughout July, it did not record exceptional upward movements. As a matter of fact, the cryptocurrency made lower highs, leading to the formation of a pennant—a technical structure that typically suggests indecision in a cryptocurrency’s price action.

XRPUSD Daily Chart on TradingView

From a technical perspective, increased bullish momentum could have XRP break out of the upper side of the Pennant formation. That would boost the digital asset’s upside sentiment, potentially confirming a return of bullish momentum. However, breaking below support at the base of the formation could reignite FUD, reintroduce bearish pressure, and cause XRP’s price to resume downwards.

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