XRP Shows Market Indecision as Bullish Options Activity Signals Confidence
XRP, the digital asset powering Ripple Labs’ cross-border payments platform, closed May with signs of market uncertainty. Despite a price action pattern suggesting hesitation, derivatives data from leading crypto options exchange Deribit indicates that bullish investors remain optimistic about XRP’s prospects.
The cryptocurrency, focused on streamlining cross-border transactions, formed a “doji” candle on monthly charts—a classic technical indicator of indecision. According to TradingView, XRP’s May price action featured a long upper shadow, reflecting an attempt by buyers to push prices up to $2.65. However, sellers resisted strongly, pushing the price back near where it started the month.
Doji candles appearing after a rally often signal a potential pause or reversal, suggesting that the recovery from April’s lows around $1.60 may be losing momentum. In line with this cautious tone, some traders last week purchased put options with a $2.40 strike expiring May 30, providing protection against a downside move.
Bullish Sentiment Persists in Options Market
Despite the indecision seen on the price charts, the broader options market paints a more optimistic picture. Open interest—the total number of active contracts—is concentrated in call options with strikes above the current spot price of around $2.16. This distribution indicates persistent bullish sentiment among options traders.
“XRP open interest on Deribit continues to rise, with most contracts clustered in the $2.60 to $3.00+ strike range, signaling strong confidence from the market,” said Luuk Strijers, CEO of Deribit, in an interview with CoinDesk.
The most popular call options include the $4 strike, with a notional open interest of $5.39 million, while the $3 and $3.10 strikes each hold over $5 million in open interest. Notional open interest refers to the total dollar value of these active contracts.
Open interest is split primarily between June and September expirations, with monthly notional volumes estimated between $65 million and $70 million, over 95% of which is traded on Deribit.
Fundamentals Support Optimism
The bullish sentiment is underpinned by XRP’s role as a cross-border payment solution and growing expectations for a U.S. spot XRP ETF approval. Ripple’s technology aims to tackle inefficiencies in traditional SWIFT payments, addressing a global B2B market forecasted to reach $50 trillion by 2031—a 58% increase from $31.6 trillion in 2024.
Additionally, XRP is gaining traction as a corporate treasury asset, further reinforcing its long-term appeal beyond pure speculation.
