Recently, there has been a significant increase in open interest for XRP options, nearing the $100 million mark. This signifies heightened trader interest in short-term trading opportunities using this token.
Surge in Open Interest for XRP Options
Open interest in XRP options has surged sharply, reaching $97.97 million on July 8, just short of the $102.3 million high recorded in June. This rise marks a 38 percent increase in just two weeks, indicating renewed interest in trading opportunities for XRP.
Bullish Sentiment Among Traders
Sentiment within the XRP options market has turned strongly bullish; according to Amberdata, more than 30 million call options are open against 11.92 million puts. This 0.39 ratio indicates a clear preference for buying. Traders expect price increases by making contracts that will expire in August and September.
Technical Indicators and Impact on Derivatives Market
XRP closed above its 20-week moving average, reinforcing bullish sentiments and increasing derivatives market activity. Meanwhile, traders using stablecoins for selling cash-secured puts anticipate purchasing XRP at lower prices, creating an attractive environment for both institutional and retail investors.
Thus, open interest in XRP options continues to grow, capturing the attention of traders, potentially impacting the short-term trading outlook for the token.
