XRP ETF Hopes Fade as Options Data Signals Ongoing Downside Risks
XRP’s potential for a U.S. spot ETF listing is gaining traction, but the options market shows that traders are wary of a near-term rally, indicating persistent downside risks.
Despite XRP’s strong order book depth, which positions it well for large trades and solid liquidity, the options market tells a more cautious story. Data from Amberdata reveals that XRP put options on Deribit are priced higher than calls, suggesting that traders are hedging against further price declines.
This bearish sentiment is further confirmed by the negative options skew across multiple timeframes, a common indicator of market unease. With puts being in higher demand, traders appear to be more focused on protecting against a drop in XRP’s price rather than betting on an immediate upside.
XRP’s technicals reflect this caution, with the coin breaking down from an ascending wedge earlier this week—a pattern that often signals a potential retest of lower support levels, around the $1.60 mark.
While ETF discussions continue to build optimism for XRP, the combination of bearish options activity and recent price movements suggests that traders are not fully convinced by the bullish narrative just yet.
