XRP and Solana Options Signal Bullish Shift While Bitcoin and Ether Lag
XRP and Solana (SOL) options have flipped bullish, with 25-delta risk reversals positive across all expiries on Deribit as traders pay a premium for calls over puts. This signals renewed confidence in both altcoins following the Oct. 10 crash, which drove XRP down to $1.77 and SOL to $188. In contrast, Bitcoin (BTC) and Ether (ETH) risk reversals remain negative across major tenors, reflecting persistent bearish bias and hedging activity, including call overwriting against spot holdings. Meanwhile, perpetual futures funding rates for XRP, SOL, BTC and ETH hover near zero, indicating neutral sentiment in the broader market. The mixed signals suggest targeted bullish interest in select altcoins but limited upside for major cryptocurrencies until funding rates and risk reversals for BTC and ETH turn positive.
Neutral
While XRP and SOL options display clear bullish sentiment via positive risk reversals, Bitcoin and Ether remain under bearish pressure with negative risk reversals across major expiries. Neutral perpetual futures funding rates further suggest cautious market participation. Historically, isolated altcoin options strength rarely drives broader market rallies without concurrent bullish signals in BTC and ETH. Traders may see short-term gains in XRP and SOL, but overall market direction is unlikely to shift until major cryptocurrencies show similar sentiment improvements.