The post XRP $1.10 Call Option Sees A Huge Surge; Are XRP ETF Speculations Driving It? appeared first on Coinpedia Fintech News
Deribit’s nascent options market for XRP is witnessing a surge in activity, particularly in the $1.10 call option that represents a bet that prices for XRP will double by the month’s end.
As of writing, XRP’s $1.10 call option, set to expire on August 28, had an open interest of 4,347,000 contracts valued at $2.44 million, making it the most favored among all available XRP options on the exchange. The amount is significant for an options market that is barely five months old. The number of active bets has increased by 838,000 contracts in the five months alone.
Can XRP Rise Above $1.10 By August?
According to Griffin Ardern, head of options trading and research at BloFin, the increased activity in the $1.10 call likely reflects a net long positioning. He said that if the resistance level of $0.75 from the past two weeks can be broken, the price of XRP is likely to rise above $1.10. He also added that institutions will likely apply for an XRP ETF in the U.S. which may be an important factor driving a sharp rise in prices.
But, Martin Cheung, Pulsar Trading Capital’s options trader was doubtful on whether prices could rally beyond $1.10 by August 28. When he was asked about the increased demand for $1.10 XRP call options, he said “XRP has rallied a lot this year, plus, I think people are betting the next ETFs to be approved will be on XRP and SOL,”
However, he also added that the August end is too close and a potential XRP ETF announcement might drive prices higher by 20%, but $1.10 looks too far.
Does Ripple’s Win Signal Towards A Potential ETF Coming Up?
Last Wednesday, U.S. District Court Judge Analisa Torres ruled on the SEC motion against Ripple Labs, stemming from a 2020 lawsuit over unregistered XRP sales. The court imposed a $125 million penalty and an injunction against further violations but rejected the SEC’s demand for a $2 billion fine.
Crypto analyst Doctor Profit took to X stating – “This aligns perfectly with my ETF approval ranking prediction: first BTC, second ETH, and third XRP- not SOL, as some have claimed.” Today’s decision is hugely bullish. Big investors who have been scared due to the lawsuit can now enter into XRP without fear.”
“The lawsuit pressure is over, and remember, we didn’t have a bull run in 2021 for XRP! This means the indicators are not just bullish—they’re extremely bullish for XRP with a very healthy chart!” he added further.
