XRP Price Soars 6%, But Futures Market Signals Overheating

XRP price jumped over 6% on Tuesday, extending its gains from the previous session.

The improving long-to-short ratios and positive funding rates suggest that derivatives traders are increasingly positioning for further price increases.

However, data from CryptoQuant presents a more cautious picture, showing overheating conditions and sell-side pressure in parts of the futures market.

CryptoQuant's indicators highlight several risks, including signs of overheating in XRP's spot and futures markets and futures activity reflecting sell-side dominance.

The signals suggest that XRP's rally retains bullish momentum but may be entering a more fragile phase.