Ripple’s 45% Surge: Could FOMO and Funding Rates Shape Its Next Big Move?

In a strong comeback, XRP has surged 45%, nearing its yearly high of $0.70. This recent rally, which has pushed the token up by 23% over the past week alone, is generating serious buzz in the crypto world. However, analysts are keeping a close eye on two key factors that could determine XRP’s path forward: the influence of Fear of Missing Out (FOMO) among investors and balanced funding rates on major exchanges.

XRP’s Breakout Amid Market Shifts

Following an initial week of lagging behind the broader crypto market momentum (which was largely spurred by the recent U.S. presidential election), XRP rebounded significantly, gaining 7.13% in the past 24 hours. The token’s recovery is capturing investor interest, with social media discussion about XRP spiking. 

According to analytics platform Santiment, XRP now comprises over 4% of all crypto-related conversations, driven by its substantial 45% rise in just eight days.

How FOMO and Funding Rates Could Impact XRP’s Uptrend

History shows that surges in social engagement often correlate with big price movements, and this time appears no different. The past spikes in XRP’s social dominance have served as reliable signals for market shifts—one peak indicated a market bottom, setting the stage for recovery, while another coincided with a top, leading to a pullback.

XRP’s next move toward breaking its March high of $0.74 depends heavily on avoiding excessive FOMO-driven buying. High levels of leveraged long positions, triggered by FOMO, could unbalance funding rates on platforms like Binance. For XRP to maintain sustainable growth, funding rates must stay balanced, allowing organic demand to drive further price appreciation without overheating the market.

Technical Indicators Pointing to Bullish Momentum

The technical outlook for XRP is increasingly optimistic, it has broken key resistance levels, showing bullish signals across several technical metrics. Among these, a Golden Cross formation on XRP’s weekly RSI stands out, with the RSI staying above the 60% mark. This pattern is typically viewed as a strong indicator of continued upward momentum.

If  XRP clears its immediate resistance at $0.74, the door opens for a possible rally toward $1, marking a significant psychological milestone for traders and investors alike.

In Summary

XRP’s recent price action suggests a strong uptrend, but how far it goes may hinge on two factors: managing investor FOMO and maintaining balanced funding rates. As technical indicators flash bullish signals and election cycle trends play in its favor, XRP could be set for a continued rally—potentially aiming for the $1 mark if current conditions hold steady.