Funding rates for XRP and Dogecoin futures indicate that altcoins could support the ongoing recovery surge.
The crypto market appears to have regained its momentum as the new year turns. Among the main winners are XRP And Dogecoin (DOGE)with nearly 20% and 26% gains respectively over the last seven days.
Despite this strong momentum, futures market data suggests things may just be heating up.
Financing rates are lagging
The XRP and Dogecoin perpetual market funding rates are lagging behind their recent price momentum. This is according to Glassnode data shared on Monday January 6.
Glassnode highlighted that despite the recent price momentum, funding rates of market leaders like XRP and DOGE have failed to become significantly positive and remain rather neutral.
Funding rates refer to the periodic payment made between traders to keep the price of a perpetual contract close to the spot market price. This periodic payment can often be used to gauge sentiment and leverage in the markets.
Positive funding rates signal significantly bullish market sentiment because it means the perpetual contract price is higher than the spot market price and long traders are willing to pay short traders to hold their position. The same applies vice versa.
Neutral funding rates, however, suggest that these fees exchanged between traders are close to zero, reflecting a balanced or prudent market environment. For XRP and DOGE, Glassnode data reveals that funding rates remain at 0.01% and 0.011%, respectively, despite their recent price increases.
Neutral financing rates suggest that the recent recovery is not driven by excessive debt that could make it more sustainable.
At the same time, this could also mean traders are buying shorts to bet against the rally, which could lead to short selling in extreme conditions, which Glassnode sees as bullish for XRP and DOGE.
Meanwhile, XRP and DOGE are not the only assets currently experiencing this phenomenon. Data from Glassnode shows funding rates for Bitcoin (BTC), Ethereum (ETH)And Solana (SOL) are also neutral at 0.009%, 0.01% and 0.006%, respectively, despite last week’s price increases.
How high can XRP and Dogecoin (DOGE) go?
Several analysts have given their views on the immediate targets for XRP and DOGE amid the recent rally.
XRP
Amid XRP’s Recent Rally, Prominent Crypto Analyst Ali Martinez revealed that the asset’s supertrend indicator presented a buy signal on the 12-hour candle chart. The Supertrend Indicator is used to identify market trends and potential entry and exit points. It works by taking into account the volatility and closing price of the asset during a given period.
As Martinez pointed out, the last time this indicator offered a buy signal was in November 2024, announcing a 470% rise in the price of XRP from $0.5 to $2.9 . Replicating this price movement could set a price target of $13.85 for the asset, up from its current price of around $2.43.
Meanwhile, a seasoned commodities trader Peter Brandt tipped The market capitalization of XRP is expected to reach $500 billion in the coming weeks. This could equate to an XRP price of $8.7 with a current circulating supply of approximately 57.4 billion coins.
Dogecoin (DOGE)
Amid the current DOGE rally, a prominent crypto analyst “Hov” said that the meme coin could be heading towards $0.42 and possibly $0.64, citing analysis from Elliot Wave. At the time of writing, DOGE is trading for around $0.39.
Nonetheless, Ali Martinez warned of a potential price correction, citing a TD sequential sell signal on DOGE’s daily candle chart.
DisClamier: This content is informational and should not be considered financial advice. The opinions expressed in this article may include the personal opinions of the author and do not reflect the opinions of The Crypto Basic. Readers are encouraged to conduct thorough research before making any investment decisions. Crypto Basic is not responsible for any financial losses.