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Amid the latest broader market correction fueled by global economic uncertainty, altcoins were among the hardest-hit assets, with the sector absorbing intense selling pressure as risk appetite rapidly weakened.
However, as capital begins to rotate back into the crypto market, a widely followed pseudonymous analyst believes XRP is emerging as one of the key altcoins to watch amid the current market transition.
XRP Could Be Gearing Up for a Major Run Back to $3.37
In a recent Quicktake post published on the CryptoQuant platform, Darkfost noted that while the altcoin market previously suffered a massive drawdown—shedding over $544 billion as reflected in the Total3 index—the trend now appears to be shifting.
According to him, capital has begun rotating back into altcoins since early February, with the Total3 market cap recovering roughly $125 billion, hinting at a potential early-stage rebound in broader market momentum.
The analyst further noted that despite signs of improving market conditions, a significant portion of investors remains positioned against the altcoin sector. This cautious sentiment is most visible in XRP’s funding rates, which are currently showing an extended stretch of negative readings, marking one of the longest bearish runs seen in years.
 
Notably, the Funding Rates indicator reflects the periodic payments exchanged between long and short traders in the XRP derivatives market. When funding rates turn negative, it typically indicates that short positions are dominant, meaning more traders are betting on downside pressure rather than upside momentum. In other words, the current prolonged negative readings suggest a strong bearish sentiment bias, even as broader market conditions show early signs of a potential recovery.
Darkfost pointed out that XRP funding rates on Binance, the largest crypto trading platform by volume, have hovered in negative territory for around three months straight. What makes this notable is that the bearish positioning has persisted even as XRP rallied over 27% over the same timeframe.
The pundit suggested that this kind of setup, particularly after a steep correction such as the reported 50% drawdown in Q1 2026, often precedes a potential trend reversal in XRP. Darkfost noted that a similar pattern emerged as recently as April 2025, when XRP plummeted to roughly $1.95 before staging a powerful rebound that ultimately fueled a 126% upsurge.
He believes that if a comparable cycle were to unfold again, current funding-rate conditions could support a meteoric price rally, with XRP potentially more than doubling in value over the coming months. In that scenario, a 126% increase from current levels would place the payments-focused token back above the $3.37 region.
XRP is currently trading at around $1.44, according to CoinGecko data, reflecting a 4.6% increase over the past 24 hours and a 1.05% gain over the past month.