XRP Ends May With Mixed Price Signals Amid Strong Bullish Options Demand
XRP, the digital token behind Ripple Labs’ cross-border payments platform, wrapped up May with signs of price hesitation, yet the options market reveals persistent optimism among traders.
The token formed a “doji” candle on monthly charts—a hallmark of indecision—showing that buyers pushed prices up to $2.65 but met resistance from sellers, who pushed it back near the month’s opening level. This pattern often indicates a pause or possible reversal after a rally, suggesting XRP’s bounce from April lows around $1.60 may be stalling.
Reflecting cautious sentiment, some traders acquired put options at the $2.40 strike expiring May 30, providing insurance against potential downside.
Still, the broader options market paints a bullish picture. Data from Deribit shows open interest heavily clustered in call options with strike prices above $2.60, signaling that many investors are betting on higher prices ahead.
Luuk Strijers, CEO of Deribit, told CoinDesk: “XRP’s open interest is growing steadily, concentrated mainly in call strikes between $2.60 and $3.00+, highlighting ongoing positive sentiment despite spot trading near $2.16.”
The $4 call option leads in popularity, with $5.39 million in notional open interest, while $3 and $3.10 strikes each exceed $5 million. Overall, XRP options see monthly volumes between $65 million and $70 million, with over 95% traded on Deribit.
Underlying this bullish outlook are XRP’s expanding use in cross-border payments and the growing expectation of a U.S. spot XRP ETF approval. Ripple’s platform aims to tackle inefficiencies in the traditional SWIFT system, with the B2B cross-border payment market forecast to hit $50 trillion by 2031, up 58% from $31.6 trillion in 2024.
Additionally, XRP’s adoption as a corporate treasury asset adds to its fundamental appeal, reinforcing the positive sentiment seen in the derivatives market.
