XRP, used by Ripple to facilitate cross -border transactions, ended May with signs of indecision. Still, activity on the dominant crypto option exchange, Deribit, suggests that bulls are not ready to settle down yet.
The payments-focused cryptocurrency formed a “doji” with a long upper shade in May, a classic sign of indecision on the market, according to card platform trade.
The long upper wing suggests that bulls pushed prices higher to $ 2.65, but carries stepped in and rejected these levels and drove prices down to the level seen at the beginning of the month.
The appearance of doji suggests that recovery rallyed from the early April, which is close to $ 1.60, is likely to run out of steam. Doji -Stearin lights that appear after appearance often cause technical analysts to require bull math and a potential turn lower.
Last week, some dealers last week bought $ 2.40 strike setting up that expires on May 30. A put option offers insurance against price falls.
Bullish Options Open Interest
The overall image remains bullish, with settings open interest concentrated in calls with higher strike in a sign of sustained positive mood. Open interest rates refer to the number of active contracts at a given time. A call option gives the buyer an asymmetrical upward exposure to the underlying asset, in this case XRP representing a bullish effort.
“XRP Open interest in Deribit increases steadily, with the highest concentration of strikes gathered upside down between $ 2.60 and $ 3.0+, reflecting a special bullish atmosphere, while the spot price is currently shopping at $ 2.16,” Luuk Strijers, CEO of Deribit, Coindesk CEO.
The chart shows that the $ 4 option is the most popular with a nominal open interest rate of $ 5.39 million. Calls to $ 3 and $ 3.10 strikes have an open interest rate (OI) of over $ 5 million each. Notional Open Interest refers to the dollar value of the number of active contracts.
“XRP option Open interest is divided into June and September expires, with monthly perception volumes, which approximately $ 65- $ 70 million, of which over 95% are traded on dismissal,” Strijers said.
The Bullish atmosphere probably comes from XRP’s positioning as a cross-border payment solution and installing expectations for a place XRP ETF listing in the US In addition, Cryptocurrency wins traction as a company school asset.
Ripple, which uses XRP to facilitate cross-border transactions, recently highlighted its potential to tackle inefficiency in Swift-based cross-border payments. The market for B2B boundary payments is expected to rise to $ 50 trillion by 2031, an increase of 58% from $ 31.6 trillion in 2024.
