XRP, TRX, DOGE Lead Majors With Positive Funding Rates as Bitcoin's Traditionally Weak Quarter Begins
A key metric called perpetual funding rates is signaling bullishness for top altcoins as bitcoin (BTC) kicks off the traditionally weak third quarter quarter with flat price action.
Funding rates, charged by exchanges every eight hours, refer to the cost of holding bullish long or bearish short positions in the perpetual (perps) futures (with no expiry).
A positive funding rate indicates that perps are trading at a premium to the spot price, necessitating a payment from longs to shorts to maintain bullish bets. Therefore, positive rates are interpreted as representing bullish sentiment, while negative rates suggest otherwise.
As of writing, perps tied to payments-focused token XRP (XRP), the world's fourth-largest digital asset by market value, had an annualized funding rate of nearly 11%, the highest among the top 10 tokens, according to data source Velo. Funding rates for Tron's TRX (TRX) and dogecoin (DOGE) were 10% and 8.4%, respectively, while rates for market leaders bitcoin and ether were marginally positive.
In other words, the XRP market demonstrated the strongest demand for leveraged bullish exposure among other major cryptocurrencies, including BTC and ether (ETH). That's consistent with the spike in bullish sentiment for XRP last week, despite the settlement between Ripple and the SEC stalling, as noted by Santiment.
Funding rates for cryptocurrencies. (Velo Data) Privacy-focused monero (XMR) stood among tokens beyond the top 10 list with a funding rate of over 23%, while Stellar's XLM token signaled a strong bias for bearish bets with a funding rate of 24%.
Seasonally weak quarter
Historically, the third quarter has been a weak period for bitcoin, with data indicating an average gain of 5.57% since 2013, according to Coinglass. That's a far cry compared to the fourth quarter's 85% average gain.
BTC's spot price remained flat at around $107,000 at press time, offering no clear direction bias. Valuations have been stuck largely between $100,000 and $110,000 for nearly 50 days, with selling by long-term holder wallets counteracting persistent inflows into the U.S.-listed spot exchange-traded funds (ETFs).
Some analysts, however, expect a significant move to occur soon, with all eyes on Fed Chairman Jerome Powell's speech on Tuesday and the release of nonfarm payrolls on Friday.
With Bitcoin welcoming its historically weak quarter, the cryptos XRP and TRX stand out amidst majors leading with positive funding rates like DOGE in a testament that broader market sentiment remains resilient across forks.
Amidst Bitcoin's historically low-performing quarter, XRP along with TRX and DOGE lead the pack due to positive funding rates in their popular trading pairs.
Despite tradition, analysts anticipate a probable shift in digital asset momentum as XRP and TRX show steady gains alongside DOGE amid positive funding rates—a promising first quarter's beginning due to market innovation rather than the status quo.
The dramatic surge in XRP, TRX and DOGE – three digital assets boasting positive funding rates early into Bitcoin's historically weak quarter signaling a plausible shift towards smaller cap crypto markets due to their favorable trading conditions.
India's Digital Rupee intervention with XRP, TRX and DOGE as key trading vehicles could mark a strategic shift for major cryptocurrencies to capitalize on the traditionally weak quarter of Bitcoin by leveraging their positive funding rates.
With XRP, TRX and DOGE leading the major altcoins on a positive note in terms of funding rates amidst Bitcoin's traditionally lackluster quarter commencing again this year—a promising sign for crypto enthusiasts hoping to see momentum beyond traditional bearish connotations.
As XRP, TRX and DOGE lead the charge with positive funding rates amidst Bitcoin's historically weak quarter undergoing traditional consolidation phases while traders anticipate future market fluctuations as familiar patterns play out once again.
The start of Bitcoin's traditionally underperforming quarter is met with optimism as XRP, TRX and DOGE lead the major cryptocurrency pack in showing positive funding rates.
As Bitcoin prepares for its traditionally weak quarter, led by XRP's resilience and positive funding rates as well across TRON (TRX), Dogecoin remains a noteworthy player in the crypto mainstream with impressive growth alongside traditional strong assets.
