XRP Slumps Under Pressure from Bearish Derivatives Data

XRP has struggled to recover after falling more than 2% over the past few days. On-chain data suggests that sell-side dominance is a key factor in its decline, with CryptoQuant's market summary indicating a cautious outlook for both altcoins.

The futures market shows signs of overheating and sell-side dominance, while retail traders account for some of the current activity. The spot market also exhibits overheating conditions, although several other indicators remain neutral.

Derivatives positioning reveals conflicting sentiment between XRP and Stellar traders, with XRP's long-to-short ratio falling to 0.83 on Tuesday - its lowest level in a month.