XRP Eyes Potential ETF Boost, But Options Market Signals Caution
Despite growing speculation that XRP could be the next cryptocurrency to secure a U.S. spot ETF after bitcoin (BTC) and ether (ETH), options market data suggests traders remain cautious.
XRP recently broke down from an ascending wedge pattern, a bearish technical signal that raises the risk of a re-test of support near the $1.60 level. This move comes despite XRP showing strong order book depth earlier in the week, outperforming rivals like Solana (SOL) in terms of liquidity and large-order execution.
While analysts highlighted XRP’s structural strength and its role in Ripple’s cross-border payment solutions as reasons it may be next in line for ETF approval, derivatives traders appear less optimistic.
Options data from Deribit, sourced via Amberdata, shows that XRP put options—contracts that benefit from a decline in price—are trading at a premium to call options across multiple timeframes. This negative skew indicates sustained bearish sentiment.
In options markets, skew reflects the difference in implied volatility between calls and puts. A negative skew suggests traders are more inclined to hedge against downside moves, or are positioning for further weakness.
The divergence between growing ETF optimism and cautious options flows underscores lingering uncertainty in the market, even as XRP continues to show signs of institutional interest and trading infrastructure strength.
