#XRP Max Pain Price At $0.54 For May Options Expiry, What It Means?
XRP Price Steady Amid SEC Lawsuit Developments
- Despite the ongoing SEC lawsuit, XRP's price has remained stable. Over the past year, XRP saw significant rallies only three times: after Judge Torres' summary judgment, the SEC dropping charges against Ripple executives, and the pre-Bitcoin halving bull market rally in March.
Importance of May Monthly Options Expiry
- The May 31 options expiry is critical for the crypto market, with substantial volatility expected. Ripple's favorable lawsuit progress & anticipated U.S. Fed rate cuts in March have prompted traders to place bullish bets on futures & options for this date.
- According to Deribit data, newly launched XRP options include calls up to $1.1. However, the latest expiry data shows a max pain price of $0.54, indicating potential for further price increases.
- On May 31, over 5,260 XRP options, with a notional value of $2.81 million, will expire. The put-call ratio is 0.22, suggesting a lucrative opportunity for traders. The max pain point implies a slight price increase above $0.54.
- XRP is trading sideways around $0.535, with a 24-hour range of $0.5238 to $0.5399. Trading volume surged 82% in the past 24 hours, indicating increased interest. As the max pain point approaches $0.54, XRP may see strong price action. Total futures open interest is 1.18 billion XRP, worth $629.82 million.
Latest Update on Ripple vs. SEC
- Both parties & third parties involved are awaiting Judge Torres' final judgment in the remedies phase, expected after the decision on the motion to seal. XRP lawsuit experts predict the judgment could arrive as early as Q3 2024.
- The SEC seeks $2 billion in fines from Ripple Labs & opposes Ripple's motion to seal evidence, arguing it would conceal crucial public information needed for the court's decisions in the remedies phase.
Overall, the upcoming May 31 options expiry & the developments in the SEC lawsuit are pivotal for XRP's price trajectory & market sentiment.
Source - coingape.com
