Insights on XRP’s Current Market Situation
The recent fluctuations in XRP’s price suggest a potential revisit of its lows around $1.6 despite a robust order book depth.
Key Points:
- The options market on Deribit favors put options, reflecting concerns about XRP’s future prices.
- Option prices indicate a prevalent fear of downside risk.
XRP’s Spot ETF Prospects: Analysts suggest XRP might lead the next wave of cryptocurrencies to secure a spot ETF approval in the U.S., following BTC and ETH. However, data from Amberdata reveals a higher cost for put options compared to calls, implying ongoing fears regarding price drops.
A put option effectively acts as insurance against declines and becomes popular among traders looking to mitigate risks or capitalize on anticipated drops in value.
Trends observed from negative skews across various timelines indicate that the demand for put options surpasses that for calls, hinting at persistent anxiety among investors.
Earlier this week, analysts highlighted XRP’s comparatively favorable order book depth, suggesting it could facilitate large transactions more smoothly and without major price impacts, especially in comparison to platforms like Solana (SOL).
XRP’s recent plunge outside of a climbing wedge pattern early Wednesday could suggest a retest of recent lows, raising significant eyebrows in the market.
