XRP extended its rally on Tuesday after gaining more than 6% in the previous session, with derivatives data showing a moderately bullish bias. CoinGlass recorded a long-to-short ratio of 1.15 for XRP, meaning long positions outnumbered shorts, while its funding rate turned positive Monday and reached 0.0079% Tuesday. Positive funding generally indicates stronger demand for bullish exposure because long-position holders pay short-position holders, although unusually high readings can increase the risk of a long squeeze. CryptoQuant data offers a more cautious view, identifying overheating in XRP’s spot and futures markets and sell-side dominance in futures activity. Elevated retail participation adds to the vulnerability to sudden volatility. Institutional demand is also increasing: spot XRP exchange-traded funds (funds traded on exchanges) recorded $11.26 million in inflows Monday, the largest inflow since Wednesday. XRP traded at $1.40 Tuesday and remained above its 50-day, 100-day and 200-day exponential moving averages, which were clustered between approximately $1.25 and $1.36. The Relative Strength Index was slightly below 60, indicating positive momentum without overbought conditions, while the Moving Average Convergence Divergence remained marginally negative, suggesting momentum was stable rather than accelerating. Support levels are near the 200-day EMA at $1.35, horizontal support at $1.30, the 50-day EMA near $1.28 and the 100-day EMA around $1.25. The $1 level is a stronger structural support zone if selling intensifies. On the upside, a decisive daily close above the $1.90 resistance level could reinforce the bullish outlook and clear the way for another advance. Until then, derivatives positioning supports further gains, but overheating and futures selling pressure warrant caution.