As XRP keeps searching for a support level while it crashes, traders are watching closely to see whether it will be able to defend the support level at $1.9. With the overextended negative funding rates, there might be a bullish reversal awaiting XRP.
Ripple’s coin, XRP, has been crashing for the past seven months. The coin was trading above $3 back in July 2025, and thereafter it started to crash gradually. During the initial stages of its fall, the coin tried to recover to $2.8; however, the selling pressure was just unbearable, and the prices continued to crash.
XRP’s crash is normal market behavior
By October, the price fell below the $2.5 level and reached $2.35. And to add insult to injury, the prices further crashed, losing another major support level, which was the 50-day moving average. What looked like a bearish trend continued as XRP kept losing support levels at regular intervals. Although it may look like XRP is bearish, this is just typical market behavior.
Why? XRP is currently down about 47% from its last all-time high in July 2025. This is not something that is extraordinary, as a correction is needed after an exceptional rally where the coin gained more than 600% since November 2024. It is resetting and is now going through the distribution phase, as early buyers book profits and late entrants are punished.
This type of shakeout is necessary for the market to resettle and build on a stronger structure for the next rally.
Will XRP defend the $1.9 support level?
In such a scenario, the question arises whether XRP will be able to hold above the $1.9 support level. It may be able to hold above this level, as the perpetual futures contracts market gives a subtle hint.
The negative funding rate has overextended on the Binance exchange. This shows that the leverage of short positions is dominating the market.
According to Darkfost’s analysis on CryptoQuant, “Historically, the market tends to move against a late consensus. The accumulation of shorts does create short-term selling pressure, but it also builds latent buying pressure. If the price starts to rise, these positions could be liquidated, fueling the upward move.”
Historical data show that a bullish rebound occurred when funding rates turned negative between August and September 2024 and again during April 2025. As such, XRP might be heading for a bullish reversal after a short squeeze. After the coin gains momentum, an XRP prediction from Standard Chartered analyst Geoffrey Kendrick is that it will hit $12.50 by 2028.
