XRP News Today: XRP Faces 15% Drop Risk as Funding Rates Rise

Crypto market analyst CasiTrades has published a detailed technical analysis concerning XRP’s current price structure, warning of potential volatility driven by rising funding rates without a significant price rally. The analysis, shared on June 11, highlights the growing risk conditions emerging within XRP’s ongoing consolidation phase. XRP is nearing the apex of its macro consolidation zone, with price trading just above key support levels. Despite this support holding for now, funding rates are gradually rising without confirmation of any meaningful breakout.

At the time of the analysis, the XRP perpetual futures funding rate had reached 0.01% per eight hours, a subtle but important metric suggesting increasing leverage on the long side. CasiTrades cautions that if funding continues to rise toward 0.02% or higher while price remains stagnant, a downside liquidity event becomes increasingly likely. The core of the concern lies in the disparity between increasing open interest and flat price action. Algorithms and market makers closely monitor these conditions, and when long positions become overcrowded and under-protected, it often leads to a rapid downside move designed to flush leveraged positions. In such a scenario, XRP could test lower support levels.

The chart attached by the analyst outlines $2.25 as a critical support zone. A failure to maintain that level would expose XRP to deeper pullbacks, with targets at $2.01, $1.90, and potentially $1.55. These levels align with key Fibonacci retracement zones and past liquidity pools, as shown on the 4-hour chart. CasiTrades does not present this potential drop as bearish in the broader context. Instead, the analysis suggests that such a liquidity sweep could generate the necessary momentum for a significant breakout in what appears to be an emerging Wave 3 of a larger Elliott Wave structure.

The chart illustrates a projected wave path extending from current consolidation toward higher Fibonacci extensions, notably the 1.618 level at approximately $3.77, and ultimately targeting a wave (4) peak above $4.00. While the market remains in a holding pattern, the analyst emphasizes that volatility is “nearly inevitable.” Whether this comes in the form of a final downward flush or a direct breakout from current levels, the implication is that XRP’s next major move could define the trajectory for the remainder of the summer. A potential bearish divergence was also noted in the RSI indicator on the lower panel of the chart, further supporting the case for caution in the near term. This divergence, coupled with rising funding and stagnant price movement, forms the technical basis for the warning issued.

CasiTrades’ analysis reinforces the importance of closely monitoring funding rates, support levels, and market positioning in the days ahead. Traders are advised to remain cautious as XRP approaches the climax of its consolidation, where the outcome could dictate both near-term corrections and the start of a new impulsive phase. The analysis underscores the delicate balance between rising funding rates and stagnant price action, highlighting the potential for significant volatility in the near future. The technical indicators and market conditions suggest that traders should be prepared for a potential downside liquidity event, which could test key support levels and ultimately drive a breakout in the broader market trend.