XRP, used by Ripple to facilitate cross-border transactions, ends with signs of hesitation. Still, in the activity on the main crypto-option exchange, deribit shows that the Bulls are not ready to back off.
According to Charting Platform TradingView, payment-focused cryptocurrencies formed a “Doji” in May with a long shadow, a classic sign of hesitation in the market.
The long upper wick shows that the Bulls raised the price to $2.65, but the bear stepped in and rejected those levels, lowering the price to close levels earlier this month.
The appearance of DOJI suggests that the recovery rally from its early April lows of nearly $1.60 may have run out. Doji candles that appear after an uptrend usually prompt technical analysts to demand cattle fatigue and reduce potential turns.
So, last week, some traders bought $2.40 strike option options that expired on May 30.
Call options open interest
Overall, the situation remains positive, with open interest focusing on higher calls, indicating continued positive sentiment. Open interest refers to the number of active contracts at a given time. The call option gives the buyer an asymmetric upward contact to the underlying asset, in this case XRP, representing a bullish bet.
“XRP’s open interest in Deribit is steadily rising, with the highest strike concentrations concentrated above $2.60 to $3.0, reflecting a particularly bullish sentiment, while the spot price is currently trading at $2.16,” Deribit’s CEO Luuk Strijers told Coindesk.
The chart shows that the $4 call option is the most popular, with nominal open interest of $5.39 million. The open interest (OI) for strike phones is over $5 million per person. Nominal open interest refers to the dollar value of the number of active contracts.
“The open-ended interest on XRP options expires in June and September, with a monthly concept volume of approximately $650-70 million, with more than 95% of deribit transactions over 95% of them.”
Bullish sentiment may stem from XRP’s positioning as a cross-border payment solution and the continued expectations of the XRP ETF list in the U.S., where cryptocurrencies are attracting attention as a corporate Treasury asset.
Ripple, which uses XRP to facilitate cross-border transactions, recently highlighted its potential to address inefficiencies in rapid cross-border payments. The B2B cross-border payments market is expected to increase to $50 trillion by 2031, up 58% from $31.6 trillion in 2024.
