XRP, used by Ripple to facilitate cross -border transactions, ended in May with signs of indecision. However, the activity on the exchange of dominant crypto options, deribit, suggests that the bulls are not yet ready to retreat.
The cryptocurrency focused on payments formed a “doji” with a long superior shadow in May, a classic sign of indecision on the market, according to the tradingView mapping platform.
The long upper wick suggests that the bulls increased prices up to $ 2.65, but the Bears intervened and rejected these levels, lowering prices to the level observed at the beginning of the month.
The appearance of the Doji suggests that the recovery rally from early April nearly $ 1.60 probably no longer has vapor. Doji’s candles appearing after the trendy trends often encourage technical analysts to call for bull exhaustion and a lower potential reversal.
Consequently, last week, some traders bought the strike option of $ 2.40 expiring on May 30. An option to sell provides insurance against price reductions.
Optimist OPTIMMENT OPTIONS Open interest
The overall image remains optimistic, with open options, a concentrated interest in the higher calls for striking as a sign of persistent positive feeling. The open interest refers to the number of active contracts at a given time. A purchase option gives the buyer an asymmetrical exposure to the underlying asset, in this case, XRP, representing a bull bet.
“XRP’s open interest on the drinking increases regularly, with the highest concentration of strikes grouped up between $ 2.60 and $ 3.0 +, reflecting a feeling in particular optimistic while the cash price is currently negotiated at $ 2.16,” told Luuk Strijers, CEO of Deribit, Coindesk.
The graph shows that the $ 4 purchase option is the most popular, with an open notional interest of $ 5.39 million. Calls for strikes of $ 3 and $ 3.10 have an open interest (OI) of more than $ 5 million each. The notional open interest refers to the value in dollars in the number of active contracts.
“The open interests of the XRP option are divided between the expirations of June and September, with monthly notional volumes approaching 65 to 70 million dollars, more than 95% of which are negotiated on a deribit,” said Strijers.
The bullish atmosphere is probably from the positioning of XRP as a solution for cross-border payments and the growing expectations of an XRP andF spot inscription in the United States in addition, the cryptocurrency is gaining ground as an entrepreneurial tax.
Ripple, which uses XRP to facilitate cross -border transactions, recently highlighted its potential to combat ineffectures in cross -border payments based on SWIFT. The B2B cross -border payment market is expected to increase to $ 50 billions by 2031, up 58% against 31.6 dollars in 2024.
