XRP News Today: Funding Rates Turn “Deep Red” as XRP Loses Key Support – $1.65 Next?

XRP (XRP) has dropped by 6.5% in the past 24 hours and has lost a key support at $1.80 as investors enter “panic” mode again.

The Fear and Greed Index just hit 28, its lowest level in 30 days, as the market is in a phase where good news is ignored and “no news” is bad news.

PPI Index – Source: US Bureau of Labor Statistics

Earlier today, the producer price index (PPI) in the United States blew past analysts’ expectations, rising by 0.5% or 30 basis points above analysts’ consensus estimate.

This could be an early indication that prices are rising, potentially as a result of President Donald Trump’s higher tariffs on key imports.

In addition, the head of state finally nominated who could be the replacement of Jerome Powell as Chairman of the Federal Reserve.

Powell’s departure could be rattling the markets as well, as Trump’s nominee, Kevin Harsh, could bring to the table a different agenda than his predecessor.

XRP’s Funding Rate Shows Third Lowest Print in Three Months

Back to XRP, trading volumes have jumped by 60% in the past day, indicating that selling pressure is mounting.

In addition, data from CoinGlass shows that the token’s weighted 4-hour funding rate turned negative and has dived to its third-lowest level in the past 3 months. This further confirms that sellers are rapidly dumping the token.

XRP Funding Rates (4H) – Source: CoinGlass

A negative funding rate means that short positions pay long positions. This is an incentive created to keep futures prices in line with spot prices in the perpetual futures market.

Most of the time, when funding rates collapse to this extent, the price recovers slightly in the near term. However, XRP just lost a key support at $1.80 and could still be on for a deeper correction.

Daily Chart Flashes High-Probability Sell Signal

The daily chart shows that a sell signal emerged yesterday as XRP dipped below this former demand zone.

XRP/USD Daily Chart (Kraken) – Source: TradingView

This is a high-probability signal that could anticipate a much deeper correction for the token at a point when buyers are nowhere to be found.

The $1.65 area seems to be a potential landing zone for the token. This was a key level back in April 2025. Back then, the market found a bottom and rallied back to $3.45 just a few months after.

The Relative Strength Index (RSI) just hit 33, meaning that the selling spree is starting to get out of hand. We have seen some strong bounces once the RSI gets this low.

However, the most favorable entry would be the $1.65 area as the indicator will be deeper into oversold territory, dramatically increasing the odds of a U-turn.

Sell Signals Pile Up in Lower Time Frames – Bears Have the Upper Hand

Heading to the 4-hour chart, four consecutive sell signals have piled up in the past 12 days, anticipating the kind of move we have seen lately.

XRP/USD 4H Chart (Kraken) – Source: TradingView

The last one popped up yesterday and foretold a bearish breakout below the $1.80 support area. This is now setting the stage for that move to $1.65 we mentioned earlier.

Securing a nice entry at around $1.78 could provide an interesting entry for a 2:1 risk-reward short position on XRP.

Funding rates are deeply negative, liquidations are rising. Bears are still in control.