XRP Bulls Push Price to $1.40 as Derivatives Traders Go Long

XRP extended its gains on Tuesday after rallying more than 6% during the previous session. The cryptocurrency is currently trading at $1.40, up from $1.30.

Derivatives traders are increasingly positioned for further price gains, with improving long-to-short ratios and positive funding rates indicating a bullish outlook. However, data from CryptoQuant presents a more cautious picture, showing overheating conditions and sell-side pressure in parts of the futures market.

The long-to-short ratio stood at 1.15 on Tuesday, with a reading above 1 indicating that more traders are betting on price increases than declines. Funding rates also support the bullish outlook, with XRP's funding rate turning positive on Monday and reaching 0.0079% on Tuesday.