The popular altcoin XRP‘s options market, especially the $1.10 call options listed on the Deribit exchange, is seeing significant interest. The options represent bets that XRP’s price will double by the end of this month, currently holding an open interest of 4.347 million contracts valued at $2.44 million. These figures are quite remarkable for an options market launched just five months ago.
Investors Take Positions Expecting a Spot ETF
According to Amberdata, the high open interest in XRP’s options expiring on August 28 may reflect ETF optimism in the market. BloFin’s head of options trading and research, Griffin Ardern, stated that the situation represents a clear long position.
According to Ardern, if XRP breaks the $0.75 resistance level in the last two weeks, the price is likely to rise above $1.10. Additionally, speculation about a potential spot ETF application for XRP in the US is also emerging as a significant factor that could lead to a sharp price increase.
XRP rose by 30% to $0.62 last month but has since given back some of those gains, currently trading at $0.57. This indicates that investors remain cautious about market expectations.
Expert Considers $1.10 Target Highly Ambitious in the Short Term
Martin Cheung from Pulsar Trading Capital expressed doubts about XRP reaching $1.10 by August 28. Cheung noted that XRP has seen significant gains this year and that investors are anticipating the next ETF approval to be for XRP and Solana (SOL). While Cheung believes a potential ETF announcement could boost XRP’s price by 20%, he considers the $1.10 level to be very distant.
The current activity in XRP’s options market appears to be linked to rising ETF expectations for cryptocurrencies in general. Nevertheless, it remains crucial for investors to be cautious and strategize according to the market’s short-term movements. Although reaching the $1.10 level seems challenging in the short term, the activity in the options market reflects ongoing optimism in the cryptocurrency market.
