As XRP Price Surges to $5, Investors Make $1 Billion
XRP investors made nearly $1 billion on Wednesday after it surged 20%.
Options Traders See XRP Hit $5
XRP could reach $5 if it breaks the upper barrier of the flag channel.
XRP price surged on Wednesday as it sought to test the upper threshold of a crucial flag channel. Investors made nearly $800 million after the price surged, while options traders bet on the remittance-based cryptocurrency hitting $5.
As investors take profits, XRP options are indicating bullish momentum.
Since Ripple got approval to launch its RLUSD stablecoin on Tuesday, the price of XRP has surged by more than 20%. Investors have made nearly $800 million since the drop below $2. This strong profit-taking trend after large price increases could put a halt to XRP’s upward momentum.
Weekly active XRP addresses also dropped, from 496k last week to 341k on Wednesday. This indicates a decrease in on-chain XRP activity and investor interest.
Amberdata reported that the $5 put option is the second most traded XRP option, indicating that traders are favoring the upside, according to CoinDesk.
The $5 Deribit call option has the largest open interest of an out-of-range call at $1.25 million. Out-of-range calls have a strike price greater than the market price of the underlying asset.
XRP bull flag points to $4.75 high
After consolidating for several days, XRP is displaying a bull flag.
A strong price rally, called a flag column, is followed by a flag-like consolidation before the breakout.
If XRP maintains strong volume above the upper barrier of the flag channel, the rise may continue with a maximum profit target at $4.75. To make such a move, it must overcome the psychological opposition near $3.00.
The RSI and Stochastic Oscillator momentum indicators are above neutral and rising, indicating bullish momentum.
A daily candle close below $1.35 would disprove the argument and push XRP below $0.93.