What You Need to Know:

• XRP has surged 11% over the past 24 hours, marking its highest price since July 28 and significantly outperforming Bitcoin and Ethereum.
• This price spike was driven by block option trades on Deribit, which involve a long straddle, interpreted as a bullish strategy targeting volatility.

XRP’s price surges 12% (CoinDesk)

XRP, a cryptocurrency primarily focused on payments, reached a price of $3.32 in a notable rise. The uptick is largely attributed to informed, anticipatory block option trades executed on Deribit. This trading method consists of large transactions conducted outside of the public order book to minimize market disruption.

Block trades in Deribit-listed XRP options. (Amberdata)

Traders leveraging the straddle strategy anticipate volatility events, though they are uncertain about the market’s direction. This strategy generates unlimited potential profits while capping losses to the total premium paid on the options. This week also saw a pivotal resolution in the SEC and Ripple case, definitively impacting XRP’s market response.