XRP $3 Bets Dominate Trading Volumes as XRP/BTC’s ‘Wedge’ Suggests Further Rally
XRP, the payments-focused cryptocurrency, experienced a 3.5% surge in the past 24 hours, fueled by bullish sentiment reflected in Deribit options market activity. Data from Amberdata reveals that July 25 call options with $3.00 and $4.00 strike prices, and a September 28 call option with a $2.80 strike, are the most actively traded. This indicates strong bullish bets on XRP’s price exceeding these levels by the respective expiry dates. High volume in the $3.00 call option, primarily driven by investor buy trades (with market makers taking the opposite side), contrasts with the predominantly seller activity in the $2.80 call. The $3.00 call also shows the highest increase in open interest over the past week.
This heightened activity in higher-strike calls correlates with growing expectations for a spot XRP ETF approval in the US. Bloomberg analysts Eric Balchunas and James Seyffart estimate a 95% probability of SEC approval, suggesting a near-certain outcome. Further bolstering the bullish outlook, Ripple, XRP’s issuer, applied for a national banking license from the Office of the Comptroller of the Currency (OCC). CEO Brad Garlinghouse highlighted this as a significant step towards establishing a new benchmark for trust in the stablecoin market, alongside existing New York Department of Financial Services (NYDFS) oversight.
Technical analysis of the XRP/BTC pair on Binance reveals a breakout from a falling wedge pattern, a bullish reversal signal. This suggests the end of the correction from April highs and a resumption of the broader uptrend. However, while the breakout is positive, lagging indicators such as the 50-day, 100-day, and 200-day Simple Moving Averages (SMAs) currently trend downwards. Despite this bearish signal from the SMAs, the bullish wedge breakout is considered the more significant indicator, suggesting the path of least resistance is upwards for XRP.
