XRP Market Analysis: Navigating Extreme Bearish Sentiment and Long-Term Potential

As of December 13, 2025, the XRP derivatives market is exhibiting extreme stress signals, most notably through a rare and alarming -20% funding rate on perpetual contracts. This level of negative funding, last witnessed during the severe market downturn of October, indicates overwhelmingly bearish sentiment and a near-total retreat of bullish positioning among traders. The situation is compounded by stagnating open interest, which remains at approximately $2.8 billion despite XRP's significant price depreciation of around 45% since July 2024. This divergence suggests a market characterized by capitulation and a lack of new capital inflows, even at lower price levels. From a professional practitioner's bullish perspective on digital assets, such extreme fear metrics often present contrarian opportunities. Historically, periods of maximum pessimism in cryptocurrency markets have frequently preceded significant reversals. The current -20% funding rate creates a powerful incentive for short sellers to close positions, as they must continuously pay funding to longs, which can act as a catalyst for a short squeeze if any positive catalyst emerges. The stagnant open interest, while concerning, also indicates that the selling pressure may be nearing exhaustion, as most weak hands have likely already exited. The long-term thesis for XRP remains tied to its utility in cross-border payments and settlements. Despite current market stresses, the underlying technology and network adoption continue to develop. For strategic investors, this period of extreme negative sentiment and depressed prices could be viewed as a potential accumulation zone. The key will be monitoring for a shift in on-chain metrics, such as increased accumulation by large holders or a resolution in the ongoing regulatory landscape, which could serve as a turning point. While the short-term outlook is dominated by fear, the structural role of blockchain in finance suggests that assets with clear use cases, like XRP, may be poised for recovery when broader market sentiment improves.

Rare Funding Rate Event Stuns XRP Market

XRP's perpetual contracts market has registered an alarming -20% funding rate, signaling extreme bearish sentiment. This rare threshold—last seen during October's market crash—reflects a near-total absence of bullish positions as traders retreat from the embattled asset.

The derivatives market shows deepening stress, with open interest stagnating at $2.8 billion despite XRP's 45% price decline since July. On-chain metrics compound concerns: The XRP Ledger's TVL has collapsed to $68 million, marking its weakest showing in 2023.

Such extreme funding rates typically precede violent market moves. With liquidity drying up and both bulls and bears reducing exposure, XRP faces heightened volatility risks heading into year-end.

XRP Price Prediction: Key Resistance at $2.17 as $1.96 Support Holds Amid Market Volatility

Ripple's XRP faces a critical juncture as traders scrutinize its price action between $1.96 support and $2.17 resistance. Glassnode's on-chain data reveals dense holder clusters at these levels, suggesting potential inflection points for the asset. "Breaking $2.17 could relieve short-term profit pressure," says analyst Ali, while a drop below $1.96 may trigger cascading sell orders from underwater holders.

The URPD metric highlights concentrated supply zones that could amplify volatility. Current price action draws parallels to 2016's flash crash setup, though whether history repeats remains uncertain. Institutional and retail traders alike are monitoring these technical levels for directional cues in a market hungry for momentum.

Ripple Lands First European Bank Client with AMINA for Crypto-Focused Cross-Border Payments

Ripple Payments has secured AMINA Bank as its first European banking partner, marking a strategic push into regulated crypto-financial services. The Swiss-based bank, licensed by FINMA, will integrate Ripple's technology to enable real-time cross-border settlements for crypto-native clients.

The collaboration addresses a persistent pain point in institutional crypto: bridging traditional fiat rails with blockchain settlement. AMINA's adoption of Ripple Payments eliminates reliance on third-party workarounds, offering compliant infrastructure for digital asset transactions.

This partnership signals growing institutional demand for hybrid solutions that merge banking compliance with blockchain efficiency. Switzerland's progressive crypto regulations position AMINA as a testing ground for scalable enterprise adoption.

Ripple Secures U.S. Banking Access, Fueling XRP’s Long-Term Target Toward $27

Ripple has obtained conditional approval from the U.S. Office of the Comptroller of the Currency to launch the Ripple National Trust Bank. This milestone places the company directly within the U.S. banking system under federal and state oversight, marking a pivotal moment for blockchain integration into regulated financial infrastructure.

The approval sets a new standard for compliant digital-asset custody and potential stablecoin issuance. Analysts highlight structural confluence in XRP’s market trends, with key price levels identified at $3.40, $10, and a long-term target NEAR $27. The move underscores Ripple’s focus on real utility and institution-grade compliance—a rare feat in crypto.

Market observers note the significance of this regulatory green light. It positions Ripple as a bridge between traditional finance and blockchain innovation, with XRP’s design proving uniquely suited for institutional adoption. The token’s macro analysis suggests bullish momentum could accelerate as banking integration progresses.