XRP’s options market is seeing a significant increase in activity, particularly in the $1.10 call option on Deribit. This specific option, which bets on XRP reaching $1.10 by the end of August, has attracted over $2 million in open interest. This makes it the most popular among all XRP options available on the platform.
Surge in Open Interest for XRP $1.10 Call Option
As of now, XRP’s $1.10 call option—set to expire on August 28—has an open interest of 4,347,000 contracts, valued at $2.44 million. This level of interest is remarkable, especially considering that Deribit’s XRP options market is only five months old. The open interest has increased by 838,000 contracts during this short period.
Griffin Ardern, head of options trading and research at BloFin, commented on this trend, suggesting that the increased activity in this call option likely indicates a net long position. Ardern explained, “If XRP breaks the resistance level of $0.75 from the past two weeks, it could easily rise above $1.10.” He also noted that a potential XRP ETF application in the U.S. might be driving this optimism.
Market Sentiment and XRP’s Recent Price Movements
XRP saw a 30% rise to $0.62 last month but has since pulled back to around $0.57. Despite this, traders remain bullish, betting on a possible rally above $1.10. The $1.10 call option gives traders the right to buy XRP at this price before the option expires. This surge in call option activity reflects traders’ confidence in XRP’s potential price rise, especially with speculation about an XRP ETF on the horizon.
Legal Developments Fuel Speculation
The excitement around XRP is also tied to recent legal developments. Last Wednesday, U.S. District Court Judge Analisa Torres ruled on the SEC’s motion against Ripple Labs, related to unregistered XRP sales. While the court imposed a $125 million penalty on Ripple, it rejected the SEC’s demand for a $2 billion fine. This ruling has renewed hopes for an XRP ETF debut in the U.S., following the approval of Bitcoin and Ether ETFs earlier this year.
Skepticism on Reaching $1.10 by Month-End
However, not everyone is convinced that XRP will hit the $1.10 mark by the end of August. Martin Cheung, an options trader at Pulsar Trading Capital, expressed doubt, stating, “XRP has already rallied significantly this year. While a potential ETF announcement might push prices higher by 20%, reaching $1.10 by month-end seems unlikely.”
With the month drawing to a close, the crypto market is watching closely to see if XRP can reach this ambitious target.
