XRP Options Surge Amid Speculation of Potential U.S. ETF Approval
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As of August 12, 2024, the $1.10 call option for XRP, set to expire on August 28, has garnered the highest open interest on the exchange, with 4,347,000 contracts valued at $2.44 million, according to data from Amberdata. This is a notable achievement for a market that has been active for just five months.
Open Interest and Market Sentiment
The open interest, which represents the number of active contracts, has grown by 838,000 contracts since the market's inception. Analysts like Griffin Ardern, head of options trading and research at BloFin, suggest this trend reflects a “net long position” strategy, indicating bullish sentiment among traders.
Ardern points out that breaking the $0.75 resistance level could lead XRP to surpass $1.10. He also notes that the potential for a U.S. XRP ETF could be a key driver behind this optimism, especially following the SEC's recent legal decision involving Ripple Labs.
Debate Over $1.10 Price Target
Despite the positive outlook, some market participants are skeptical about reaching the $1.10 target by the August 28 expiration date. Martin Cheung, an options trader at Pulsar Trading Capital, believes that while a potential XRP ETF could boost prices by around 20%, the $1.10 mark may be too ambitious in the short term.
Overall, the surge in XRP options activity highlights growing optimism in the market, particularly regarding the potential approval of a U.S.-based XRP ETF. While reaching the $1.10 price target by the end of August may be challenging, the underlying bullish sentiment remains strong.