XRP Market Faces Regulatory Scrutiny, ETF Hopes and Mixed Technicals Drive Bullish Options Activity
Ripple’s XRP is experiencing a period of heightened attention among crypto traders as both regulatory developments and market dynamics converge. Initially, XRP faced scrutiny as Ripple challenged the U.S. SEC’s approach, arguing that XRP is not a security in secondary markets. Regulatory optimism was fueled by the SEC’s formal review of WisdomTree’s proposal for a spot XRP ETF, which could lead to a listing on the Cboe BZX Exchange. This, paired with Ripple’s legal efforts and noting XRP’s longevity and market capitalization, bolstered hopes for further integration into U.S. regulated markets and broader institutional adoption. Despite this regulatory progress, excitement did not immediately translate into notable price gains. Technically, XRP entered a tightening trading range and formed a falling wedge, a bullish reversal pattern, while support held near $2.08 and key resistance sat at $2.37. In more recent developments, the monthly chart closed with a doji candlestick featuring a long upper wick, signaling market indecision and potential bull exhaustion after earlier advances to $2.65. Despite mixed technical signals, sentiment among options traders remains bullish, with significant open interest in higher-strike calls ($2.60, $3.00, $4.00) primarily on Deribit. Over 95% of notional monthly XRP options, totaling $65-70 million, are traded there. Bullish options activity continues to be driven by rising ETF expectations and Ripple’s positioning of XRP as a global B2B payment solution in a market set to reach $50 trillion by 2031. Combining regulatory optimism, active derivative markets, and speculative appetite, traders should monitor both legal and technical developments for potential XRP price volatility.
Bullish
Despite mixed technical signals, XRP maintains strong bullish sentiment in the options market—particularly with substantial open interest concentrated in higher-strike call options on leading platforms like Deribit. The anticipation of SEC approval for a spot XRP ETF and Ripple’s continued efforts to position XRP as a key solution for international B2B payments provide additional upward momentum. Historical patterns show that ETF approval speculation and clarity on regulatory status often drive both speculative and institutional inflows, which could result in significant price appreciation. While short-term technicals indicate some indecision and potential exhaustion, the robust derivatives activity in conjunction with regulatory advancements signal an overall bullish outlook for XRP, especially if positive legal and ETF decisions materialize.