XRP, used by Ripple to facilitate cross -border transactions, ended with signs of indecision. Even so, the activity in the dominant exchange of cryptography options, Deribit, suggests that bulls are not yet ready to go back.
The cryptocurrency centered on payments formed a “doji” with a long upper shadow in May, a classic sign of indecision in the market, according to the TrainingView platform.
The long superior wick suggests that the bulls raised prices to $ 2.65, but the bears intervened and rejected those levels, which raised prices at the level seen at the beginning of the month.
The appearance of the DOJI suggests that the recovery rally of the minimums of early April, about $ 1.60, has probably run out of steam. Doji candles that appear after the trends reached often lead to technical analysts to request bull exhaustion and a lower turn potential.
Consequently, last week, some merchants bought the 5 2.40 strike sales option that expired on May 30. A sales option offers insurance against price drops.
Open interest bull options
The general image remains optimistic, with open interest options concentrated in calls with greater attack on a sign of persistent positive feeling. Open interest refers to the number of active contracts at a given time. A purchase option gives the buyer an asymmetric exhibition up to the underlying asset, in this case, XRP, which represents an upward bet.
“XRP’s open interest in Delibit is constantly increasing, with the highest concentration of strikes grouped by the positive side between $ 2.60 and $ 3.0+, which reflects a remarkably bullish feeling, while the spot price currently lies to $ 2.16”, Luuk Strijers, CEO of Delibit, told Coastk.
The table shows that the purchase option of $ 4 is the most popular, with an open notional interest of $ 5.39 million. Calls to strikes of $ 3 and $ 3.10 have an open interest (OI) of more than $ 5 million each. The notional open interest refers to the dollar value of the number of active contracts.
“The open interest of the XRP option is divided through June and September, with monthly notional volumes that are approaching $ 65 to $ 70 million, of which more than 95% is negotiated in Delibit,” said Strijers.
The bullish mood probably comes from the positioning of XRP as a solution of cross -border payments and assembly expectations of an XRP Spot ETF list in the United States, in addition, cryptocurrency is gaining ground as an asset of corporate treasure.
Ripple, which uses XRP to facilitate cross -border transactions, recently highlighted its potential to address inefficiencies in cross -border payments based on swift. It is projected that the B2B cross -border payment market increases at $ 50 billion in 2031, 58% more than $ 31.6 billion in 2024.
