The funding rates of XRP and Dogecoin futures suggest that altcoins may continue to drive the economic recovery.

 

As the new year arrives, the cryptocurrency market seems to have regained its momentum. Among the assets with the largest increases are XRP and Dogecoin (DOGE), which have risen by nearly 20% and 26% respectively in just the past seven days.

 

Despite the strong momentum, futures market data indicates that while the situation may be warming up, the funding rates are lagging behind.

 

The perpetual market funding rates of XRP and Dogecoin lag behind their recent price momentum. This is based on the data shared by Glassnode on Monday, January 6. Glassnode emphasized that despite the recent strong price momentum, the funding rates of market leaders like XRP and DOGE have not significantly turned positive but remained neutral.

 

 

 

The funding rate refers to the payments made regularly between traders to keep the price of perpetual contracts close to the spot market price. Such regular payments are usually used to measure market sentiment and leverage levels.

 

A positive funding rate indicates a clearly bullish market sentiment, as it means the price of the perpetual contract is higher than the spot market price, and long traders are willing to pay short traders to hold their positions. Vice versa.

 

However, a neutral funding rate indicates that the fees exchanged between traders are close to zero, reflecting a balanced or cautious market environment. For XRP and DOGE, Glassnode's data shows that despite the recent price increases, the funding rates remain at 0.01% and 0.011% respectively.

 

The neutral funding rate suggests that the recent rally is not driven by excessive leverage, which may make it more sustainable.

 

Meanwhile, this could also mean that traders are buying short positions to bet on the rally, which might lead to a short squeeze under extreme conditions. Glassnode believes that all of these are favorable for XRP and DOGE.

 

Meanwhile, XRP and DOGE are not the only assets currently showing this phenomenon. Glassnode data shows that despite price increases in the past week, Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) have funding rates of 0.009%, 0.01%, and 0.006% respectively.

 

How high can XRP and Dogecoin (DOGE) go? During the recent rally, several analysts have shared their views on the near-term targets of XRP and DOGE.

 

During XRP's recent rally, the renowned cryptocurrency analyst Ali Martinez revealed that the asset's Supertrend indicator showed a buy signal on the 12-hour candlestick chart. The Supertrend indicator is used to identify market trends and potential entry and exit points. It works by considering the asset's volatility and closing price over a specific period.

 

As Martinez emphasized, the last time this indicator gave a buy signal was in November 2024, which foreshadowed a surge in XRP's price from $0.5 to $2.9, a 470% increase. Replicating this price movement could set a target price of $13.85 for the asset, while the current price is approximately $2.43.

 

Meanwhile, veteran commodities trader Peter Brandt revealed that XRP's market capitalization will reach $5000 billion in the next few weeks. This could be equivalent to an XRP price of $8.7, with approximately 57.4 billion coins currently in circulation.

 

During the current DOGE rally, the well-known cryptocurrency analyst "Hoff" asserted that based on Elliot Wave analysis, the meme coin could head towards $0.42 and eventually reach $0.64. At the time of writing, DOGE is trading at approximately $0.39.

 

Nevertheless, Ali Martinez has warned that a TD Sequential sell signal on the DOGE daily chart could lead to a price adjustment.