The cryptocurrency market is changing, and the negative interest rate of XRP funds has aroused market attention

As the cryptocurrency market continues to fall, Ripple's XRP has recently seen a negative money rate, which not only reveals the depth and breadth of the market correction, but also reflects subtle changes in investor sentiment. In this article, we will delve into the logic behind the decline in the XRP money rate from a financial perspective, explore its impact on the market, and the possible future trend.

The money rate is an important indicator to measure the supply and demand relationship in the crypto futures market, which reflects the balance of power between bears and bulls. Under normal circumstances, the money rate will fluctuate around a relatively stable level, but when there are abnormal fluctuations in the market, the money rate tends to deviate significantly from the norm.

Recently, XRP's money rate has rapidly turned negative in a short period of time, well below the stable level of 0.01%. This change indicates that investors' bearish sentiment towards XRP has increased significantly as the cryptocurrency market continues to decline. Short traders began to gain the upper hand by paying long traders to express their expectation of a market decline.

The decline in the money rate not only reflects the change in market sentiment, but also reveals the adjustment of investor behavior. In the physical market, traders tried to fend off selling pressure by buying on dips. The net outflow data from major exchanges such as Binance, OKX, Kraken and Bybit suggest that spot traders, while successfully absorbing selling pressure, are also looking for suitable buying opportunities. This net outflow, while seemingly pessimistic, actually reflects a self-regulating mechanism of the market.

From a technical analysis point of view, XRP has formed a double top shape in the recent market decline. This pattern is often seen as a signal of a market top, indicating that prices may be due for a correction for some time to come. The formation of a double top pattern means that the price fails to continue rising after being blocked twice near a certain level, but instead turns downward.

Specifically, XRP formed a double top after two rejections on the pennant boundary and subsequently broke below support at $2.33. This break further confirms the bearish trend in the market, making it likely that XRP will continue to fall to test support at $2.17.

If XRP fails to hold support at $2.17 for some time to come, it could rebound from the lower boundary support of the pennant. However, this rally will likely be short-lived, as a break below the pennant and support at $1.96 will validate a rounded top pattern. The formation of this pattern could push XRP even lower, around $1.71.

Of course, markets don't always work as expected. If XRP is able to maintain a menorah close above the pennant for some time to come, it could be in for a rally to test resistance at $2.90. However, it is important to note that the sustainability of this rally will depend on changes in market sentiment and fundamentals.

The relationship between the fund rate and open interest is also an important reference for analyzing market trends. Open interest reflects the position of market participants, while the money rate reflects the distribution of interests among the holders.

Recently, open interest in XRP has been at elevated levels since Monday's surge. This shows that despite the bearish sentiment in the market, traders still maintain a high willingness to open positions. This willingness to hold positions may stem from the expectation of a market rebound, or it may stem from recognition of the value of long-term investments.

However, it is important to note that the high level of open interest does not necessarily mean the market will rebound immediately. In most cases, high levels of open interest are often accompanied by greater market volatility and uncertainty. Therefore, investors need to carefully consider market risks and their own tolerance when making decisions.

Although XRP is currently facing the dual pressure of falling markets and falling interest rates, Ripple's future development is still worth watching. As a company focused on cross-border payment and remittance solutions, Ripple's business model and business model have high innovation and market potential.

Monica Long, president of Ripple, said in an interview that the company's RLUSD stablecoin will expand to well-known exchanges in 2025, and revealed that the XRP ETF could be the next option after the Bitcoin and Ether ETFs. This news undoubtedly provides more room for imagination for the future development of Ripple and XRP.

However, it is important to note that the future development of Ripple and XRP is not smooth sailing. On the one hand, Ripple faces regulatory risks and legal challenges; On the other hand, XRP as a cryptocurrency also faces the challenges of market competition and technical risks. Therefore, investors need to be rational and objective when looking at the future development of Ripple and XRP.

To sum up, as the cryptocurrency market continues to fall, Ripple's XRP has seen a negative money rate. This phenomenon not only reveals the depth and breadth of the market correction, but also reflects subtle changes in investor sentiment. From a technical analysis point of view, XRP has formed a double top pattern in the recent market decline and may continue to fall to test support levels. However, the movements of the market are not set in stone, and investors need to remain vigilant and keep a close eye on market developments.

For investors, it is necessary to adopt a cautious investment strategy in the current market environment. On the one hand, we should reasonably control the position and risk exposure; On the other hand, pay close attention to changes in market sentiment and fundamentals. At the same time, investors can also consider diversifying their portfolios to diversify their risks and improve their overall returns.

Finally, it is important to emphasize that the cryptocurrency market has a high level of volatility and uncertainty. When investors participate in the market, they need to fully understand the market rules and risk characteristics, and make reasonable decisions according to their own risk tolerance and investment objectives.