XRP's Bullish Rally Hits Overheating Territory
XRP surged by over 6% in the previous session, sparking bullish sentiment among traders. However, data from CryptoQuant suggests that some parts of the futures market are showing signs of overheating.
The long-to-short ratio on CoinGlass indicates that more traders are betting on price increases than declines, with a reading above 1.15. Additionally, funding rates have turned positive, indicating stronger demand for bullish exposure.
However, CryptoQuant's indicators highlight several risks, including signs of overheating in the spot and futures markets, as well as sell-side dominance. Retail participation is also high, which can make XRP more vulnerable to sudden volatility.
Institutional interest in XRP products has been increasing, with spot exchange-traded funds recording an inflow of $11.26 million on Monday, their largest since Wednesday.