The cryptocurrency XRP has seen a 3.5% price increase in the past 24 hours, fueled by bullish activity in the options market and growing anticipation around a potential XRP spot ETF approval. Data from Deribit exchange reveals heightened trading volume, signaling strong trader confidence in XRP's upward trajectory.
Bullish Bets Dominate XRP Options Market
Recent data from Amberdata highlights aggressive call option activity on Deribit since July 1, with traders targeting these key strike prices:
- $3 call options expiring July 25
- $4 call options expiring July 25
- $2.80 call options expiring September 28
👉 What are call options? They grant buyers the right to purchase XRP at a fixed price, essentially a wager on future price gains. For instance, a $3 strike price call option reflects a bet that XRP will exceed $3 by July 25.
Trading Flow Insights
- $3 calls saw 2 million contracts bought in 24 hours, with buyers driving demand.
- $2.80 calls were primarily sold (written) by investors.
- Open interest for $3 calls grew the most weekly, indicating concentrated bullish positions.
Spot ETF Approval Odds Hit 95%
Bloomberg analysts now assign a 95% likelihood to SEC approval of an XRP spot ETF, a major catalyst for the options market frenzy. This optimism stems from:
- Regulatory clarity following Ripple’s partial court wins.
- Institutional demand mirroring Bitcoin ETF inflows.
Ripple’s Banking License Bid Boosts Credibility
On July 3, Ripple applied for a U.S. national bank charter with the OCC. CEO Brad Garlinghouse emphasized this would subject Ripple to dual state (NYDFS) and federal oversight, enhancing trust in XRP’s use for cross-border payments.
Technical Breakout: XRP/BTC Exchange Rate Turns Bullish
The XRP-to-Bitcoin pair broke a descending wedge—a classic reversal pattern—suggesting:
- Selling pressure is fading.
- Bullish momentum could resume, potentially ending April’s downtrend.
Conflicting Signals?
- 50-day and 100-day SMAs trend downward.
- Both crossed below the 200-day SMA (bearish).
- Lagging indicators may underestimate the wedge breakout’s significance.
FAQs
Q: Why are call options for XRP surging?
A: Traders anticipate price spikes from ETF approvals and Ripple’s regulatory progress.
Q: What’s the impact of a U.S. banking license for Ripple?
A: It would legitimize XRP for institutional use, likely increasing demand.
Q: Is the descending wedge breakout reliable?
A: Yes, but confirm with volume spikes and follow-through buying.
👉 XRP price predictions suggest a rally if ETF approval occurs. Stay tuned for updates!
Disclaimer: This content is for informational purposes only and does not constitute financial advice.