XRP extends losses as negative funding and rising yields weigh on sentiment

Key takeaways

• XRP continued its slide on Thursday, marking a fourth consecutive day of decline.
• CoinGlass data showed negative funding rates for XRP, while long-to-short ratios presented a mixed outlook.
• Reports of U.S. preparations for potential military strikes against Iran introduced further market uncertainty.

XRP remained under pressure Thursday as weakening derivatives indicators and challenging macroeconomic conditions limited buying enthusiasm.

The cryptocurrency extended its downward correction following three straight days of losses, trading around $1.422 and bringing its weekly decline to over 6%.

Negative funding rates highlighted bearish pressure in the perpetual futures market, while elevated U.S. Treasury yields, a strong dollar, and geopolitical anxieties weighed on broader market sentiment.

Mixed signals from XRP derivatives

On Thursday, CoinGlass reported an XRP long-to-short ratio of 0.88, indicating a slight tilt toward short positions within the tracked data.

Funding rates showed a more consistent bearish trend. After dipping below zero on Wednesday, XRP’s funding rate stood at -0.0022% on Thursday.

A negative funding rate means short-position holders pay long-position holders, which often signals stronger demand for bearish perpetual contracts. However, neither funding rates nor positioning ratios are guaranteed predictors of future price direction.

Meanwhile, the U.S. Dollar Index stabilized around 102.24 on Thursday after reaching an intraday high of 102.53 on Monday—its highest level since early April 2025, according to the report.

The 10-year U.S. Treasury yield held near 5.30% after touching approximately 5.35% on Monday, which was noted as a fresh two-decade high.

Higher yields boost the appeal of interest-bearing investments, making conditions less favorable for speculative, non-yielding assets such as XRP and XLM.

Minutes from the September 15–16 Federal Open Market Committee meeting showed unanimous support among officials for raising the target range of the federal funds rate. Most policymakers also expected another rate hike would likely be necessary before the end of the year to combat persistent inflation. This hawkish outlook reinforced the pressure from high yields and a strong dollar.

Iran strike reports fuel geopolitical uncertainty

The report also highlighted preparations for potential renewed U.S. military actions against Iran.

The Pentagon reportedly directed U.S. Central Command to finalize preparations while President Donald Trump evaluated the timing of potential strikes.

While these reports describe potential military action rather than confirming an actual attack, the uncertainty surrounding a possible escalation could prompt defensive positioning, support demand for the safe-haven dollar, and reduce appetite for cryptocurrencies.

XRP price outlook: Testing support at $1.400

Despite its weekly losses, XRP managed to remain above its key daily exponential moving averages (EMAs).

The 50-day EMA near $1.400 serves as immediate support, closely followed by the 200-day EMA at $1.389. Below those levels, the 100-day EMA sits at $1.336.

Holding above these levels keeps a portion of XRP’s constructive technical structure intact. However, momentum remains weak: the RSI hovered near 45, while the MACD stayed below zero.

A sustained break below the nearby moving-average support cluster would shift focus to $1.336 and horizontal support at $1.300. The report identifies $1.000 as a more distant downside target.

On the upside, the analysis points to notable resistance at $1.671. A decisive breakout above this level would bring $1.900 into view.