XRP extended its rally on Tuesday, trading around $1.40 after gaining more than 6% in the previous session. Derivatives data from CoinGlass showed a long-to-short ratio of 1.15, meaning more traders are positioned for upside than downside. XRP’s funding rate flipped positive on Monday and climbed to 0.0079% on Tuesday, indicating long traders are paying shorts and demand for bullish exposure remains firm.
However, CryptoQuant warned that spot and futures markets are showing signs of overheating, while futures activity reflects sell-side dominance. Elevated retail participation could make the token more vulnerable to sharp volatility, even as the short-term trend remains constructive.
Institutional demand has also strengthened. U.S. spot XRP ETFs recorded $11.26 million in net inflows on Monday, their largest single-day inflow since Wednesday. The broader trend has been even more notable: XRP ETFs posted their strongest week of 2026 in late August with $110.49 million, bringing cumulative net inflows to about $1.66 billion. The seven U.S. spot XRP funds now hold approximately 1.1 billion XRP, or about 1.13% of total supply, with combined assets near $2 billion.
By contrast, U.S. spot Bitcoin ETFs lost roughly $282.6 million on September 10, their third consecutive day of outflows, while XRP funds added another $5.1 million and extended their inflow streak. Bitcoin remains below $80,000 as markets await a Federal Reserve decision and digest higher inflation and interest-rate expectations.
From a technical perspective, XRP holds above its 50-day, 100-day and 200-day exponential moving averages, clustered between roughly $1.25 and $1.36. The Relative Strength Index is slightly below 60, signaling positive but not overbought momentum, while the MACD remains marginally negative. Key support sits at $1.35, followed by $1.30, $1.28 and $1.25; a deeper floor is the $1.00 psychological level. On the upside, resistance stands near $1.90, and a decisive daily close above that level could open the path toward $2.
Still, the combination of strong ETF inflows and positive derivatives positioning supports the bullish case, but overheating signals and futures selling pressure warrant caution. Today’s CLARITY Act procedural vote adds another potential source of volatility as traders position around the $1.40 battleground.
