XRP Rallies 12% as Traders Bet on Sharp Price Swings With Long Straddle Option Plays
XRP climbed 12% over the past 24 hours, reaching $3.32—its highest level since July 28—outpacing bitcoin (BTC) and ether (ETH) as traders placed aggressive bets on renewed price volatility.
The rally was supported by sizable block trades on crypto options exchange Deribit, where institutional traders executed long straddle strategies—typically used when expecting significant market movement without a clear directional bias. These strategies involve purchasing both call and put options at the same strike price, aiming to profit from large moves either up or down.
One such trade saw the simultaneous purchase of 100,000 contracts for XRP options expiring August 29 at the $3.20 strike, with over $416,000 paid in premiums. A similar position was recorded at the $3.10 strike level, signaling a surge in volatility-driven strategies.
“XRP has been one of the standout performers this year, and we’re now seeing increased demand for structured volatility plays,” said Lin Chen, Deribit’s Head of Asia. “Institutional activity has picked up notably, prompting us to launch year-end XRP options to meet the demand.”
The renewed options interest coincided with a key legal resolution: Ripple and the U.S. Securities and Exchange Commission have agreed to withdraw their respective appeals in the Second Circuit, bringing a long-standing case closer to resolution. Ripple uses XRP to facilitate global payments and cross-border transfers.
Long straddle strategies carry limited downside—capped at the total premium paid—but offer unlimited profit potential if the asset moves sharply in either direction. These plays are typically used ahead of events expected to trigger major volatility.
With the legal cloud lifting and options markets pointing to elevated expectations, XRP could see further volatility-driven momentum in the days ahead.
