XRP Bulls Eye $1.90 as Funding Rates Turn Positive

XRP rallied over 6% on Tuesday, gaining momentum as derivatives traders become increasingly bullish. According to CoinGlass data, the long-to-short ratio for XRP is now at 1.15, indicating that more traders are betting on price increases than declines.

Funding rates have also turned positive, with a rate of 0.0079% on Tuesday. This suggests stronger demand for bullish exposure, but excessively positive funding can increase the risk of a long-position squeeze.

However, CryptoQuant's market indicators highlight several risks. The spot and futures markets are showing signs of overheating, while futures activity reflects sell-side dominance.

The signals suggest that XRP's rally retains bullish momentum but may be entering a more fragile phase. Institutional interest in XRP products has been on the rise, with spot exchange-traded funds (ETFs) recording an inflow of $11.26 million on Monday.