XRP News Today: Altcoins XRP TRX DOGE Show Bullish Trends With Funding Rates Up 11% 10% 8.4%

Cryptocurrency markets are showing promising trends as perpetual futures funding rates indicate growing optimism for major altcoins. Bitcoin’s sideways movement in its typically uneventful third quarter contrasts with the increased demand for leveraged long positions in altcoins such as XRP, TRX, and DOGE, where funding rates are on the rise. Exchanges apply funding rates every eight hours, serving as a barometer of short-term market sentiment. A higher funding rate generally suggests that futures prices are trading at a premium over spot prices, signaling robust demand. A downward rate suggests bearish feelings among traders. Recent data highlights an annual spike in XRP’s funding rate to approximately 11%, the highest among the top ten cryptocurrencies. TRX shows a 10% rate, while DOGE follows at 8.4%; both remain ahead of Bitcoin and Ether, which show modestly positive rates.

Besides the foremost cryptocurrencies, Monero (XMR) has experienced a notable funding rate surge to over 23%, while Stellar’s XLM suffers with a 24% negative rate, reflecting prevailing bearish outlooks. In the midst of ongoing legal disputes between Ripple and the SEC, XRP’s rise in leveraged long positions underscores investor optimism. Research conducted by Santiment supports ongoing bullish trends. These shifts across various altcoins provide critical insights into investor motivations. Volatility in leveraged positions illustrates the intricate dynamics influencing short-term market behaviors.

Historically, the third quarter has underwhelmed for Bitcoin with an average gain of just 5.57%, significantly less than the 85% typical of the fourth quarter. Bitcoin’s stability around a narrow trading range for almost 50 days points to a balance between long-term investors cashing out and contributions from U.S. exchange-traded funds. Analysts are preparing for potential major price changes, with eyes on Federal Reserve Chair Jerome Powell’s comments and non-farm payroll statistics.

The cryptocurrency market is experiencing a notable shift as funding rates for perpetual contracts on major exchanges have transitioned from neutral to positive. This change indicates a growing bullish sentiment among traders, who are increasingly optimistic about the future performance of Bitcoin and other major cryptocurrencies. The funding rate, a key indicator of market sentiment, has seen a significant decline since 2016, with extreme funding rates dropping by 90%. This trend suggests that the market is cooling off from overheated long positions, creating a more stable environment for sustainable price movements.

Bitcoin, the largest cryptocurrency by market capitalization, is currently trading near its previous all-time high of $111,970, with its price standing at $107,666. Over the past week, Bitcoin has seen a 5.71% increase, sparking discussions about whether it will surpass its historical peak. The modestly positive funding rates, peaking at approximately 0.009%, suggest investor optimism without excessive leverage use in the market. The dip in funding rates on June 21, followed by a steady recovery, indicates that the market underwent a healthy cooling period, which is conducive to a sustainable upward movement.

The net outflow of BTC from exchanges since June 20 further supports this bullish sentiment. This trend, often interpreted as a sign of long-term confidence, typically results from investors moving assets to cold storage. Declining exchange inflows underscore reduced short-term selling pressure, further enhancing the likelihood of a sustainable price uptrend. Bitcoin’s price experienced a 0.29% increase during the day and a 5.71% rise over the past week, reaching a daily high of $108,798. A 32% rise in 24-hour trading volume supports the increase and hints at renewed market participation. The current close proximity, about 3.8%, between the present price and the all-time high positions Bitcoin to challenge its historical peak. Continuation of this momentum suggests a possible test of the $112,000 level.

A sustained breakout above the recent peak of $108,800 could trigger “breakout” trades and a short squeeze. However, bullish proponents must stay vigilant for potential sell-offs around the significant psychological barrier of $110,000 before the all-time high test. This area serves as one of the last substantial hurdles on Bitcoin’s path to revisiting its historical high. Bitcoin remains a dominant choice, comprising 83% of the weekly total inflow, equal to $2.2 billion. Reflecting this bullish sentiment, there was a significant surge in investment in crypto products for the 11th consecutive week. Bitcoin's hashprice has surged to its highest level since early February, rising above $58.5/PH/s following a 7.4% decline in network difficulty—the steepest decline since May 2023. The flagship cryptocurrency has been marginally down over the past 24 hours, trading at around $82,650. BTC continues to face challenges in surpassing the key $111K resistance level, its current all-time high, after several weeks of consolidation. Bitcoin is only up 14% for the year. So it will need a massive year-end rally to reach the much-hyped $200,000 price level. Investors are watching four key signals for Bitcoin's next surge: the money supply, bank reserves, the Fed's balance sheet, and dollar funding costs.

The shift in funding rates and the overall market sentiment suggest that traders are increasingly bullish on Bitcoin's prospects. The decline in extreme funding rates and the net outflow of BTC from exchanges indicate a more stable and confident market environment. As Bitcoin continues to trade near its all-time high, the potential for a sustained breakout above $110,000 remains a key focus for investors. The current market conditions, characterized by modestly positive funding rates and reduced short-term selling pressure, create a favorable backdrop for a potential test of the $112,000 level. However, traders must remain vigilant for potential sell-offs around the $110,000 psychological barrier before the all-time high test. The overall trend suggests a growing optimism in the cryptocurrency market, with Bitcoin leading the way as the dominant choice for investors.