Will XRP price double again as latent buy pressure threatens shorts?

Will XRP Price Double Again as Hidden Buying Pressure Builds?

XRP is once again under the spotlight as traders debate whether history is about to repeat itself. After months of sideways movement and heavy downside pressure, derivatives data is flashing signals that closely resemble conditions seen before XRP’s most explosive rallies. While price action remains subdued for now, a growing imbalance beneath the surface suggests that short sellers may be underestimating the risk ahead.

Negative Funding Rates Reveal a Crowded Trade

Over the past two months, XRP funding rates on major exchanges have remained consistently negative. This indicates that a large portion of leveraged traders are positioned for further downside, paying a premium to maintain their short exposure. Historically, such conditions have not been sustainable for XRP.

Similar funding environments appeared ahead of sharp rebounds in previous cycles. In mid-2024, negative funding preceded a rally of roughly 50%, while in early 2025, the same setup was followed by a surge of more than 100%. These patterns suggest that excessive pessimism among derivatives traders has often created the foundation for aggressive upside moves.

How Falling Prices Created Latent  Buy Pressure

The current bearish bias emerged after XRP suffered a steep decline from its multi-year high near $3.66, losing roughly half of its value. That correction reinforced negative sentiment and encouraged traders to pile into short positions. However, this collective positioning may now be working against the bears.

When shorts accumulate at scale, they create what analysts describe as latent buying pressure. As price begins to rise, even modestly, these short positions can be forced to close, triggering liquidations that convert selling pressure into rapid buying. This dynamic has repeatedly fueled XRP’s strongest rallies over the past two years.

Why the $2 Zone Matters More Than Ever

XRP recently rebounded from the lower boundary of its long-standing trading range, stabilizing around the $1.80 to $2.00 area. This zone has acted as a critical inflection point throughout 2025, serving as the launchpad for XRP’s last major rally toward $3.66.

Despite this bounce, the $2 level remains psychologically and technically decisive. Previous retests of this area were often accompanied by large realized losses, indicating that many holders chose to exit rather than accumulate. For the bullish thesis to regain strength, XRP must not only hold this support but reclaim higher levels with conviction.

Technical Levels That Define the Bullish and Bearish Paths

From a broader technical perspective, XRP’s outlook hinges on its ability to reclaim key moving averages. A sustained move above the $2.22 region would signal that buyers are regaining control and could open the door to a renewed push higher. Failure to do so, however, would leave XRP vulnerable to a deeper pullback toward longer-term support levels near $1.40.

This tension between structural support and overhead resistance explains why the market feels compressed. Volatility is being stored, and once released, it is unlikely to be subtle.

Where Traders Are Positioning for the Next Move

As uncertainty persists, many traders are turning to advanced platforms such as BYDFi to monitor funding rates, open interest, and derivatives positioning in real time. Access to these metrics is becoming increasingly important as XRP approaches a potential turning point, where shifts in sentiment can trigger rapid and outsized price moves.

BYDFi’s derivatives tools allow traders to assess whether negative funding is easing or intensifying, offering valuable insight into whether short pressure is reaching exhaustion or preparing for another wave.

Can XRP Really Double Again?

The idea of XRP doubling in price may sound ambitious, but it is not without precedent. Past cycles have shown that when negative funding persists for extended periods and price holds critical support zones, upside reversals can be swift and violent. Still, this outcome depends on XRP maintaining the $1.80–$2.00 region and attracting fresh spot demand.

If support breaks decisively, the latent-buying-pressure thesis weakens considerably, shifting the balance back in favor of the bears. Until then, the risk remains asymmetrically skewed against overconfident short sellers.

Final Outlook

XRP’s current setup reflects a familiar narrative. While price remains under pressure, derivatives data suggests that the market may be leaning too heavily in one direction. Negative funding rates, compressed price action, and historical precedent all point to the possibility of another sharp move if conditions align.

Whether XRP ultimately doubles again will depend on how it behaves around key technical levels in the coming weeks. For now, one thing is clear: as hidden buying pressure builds, shorts may be standing closer to danger than they realize.

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