XRP is experiencing a notable rise of over 3.5% in the last 24 hours, attributed to activities in the derivatives market and renewed investor confidence.
XRP Options Market Dynamics
According to Amberdata, since July 1, $3 call options have been the most traded contracts, with investors engaging in aggressive buying as market makers positioned on the opposite side. If the price exceeds $3 by the expiration date of July 25, buyers will profit. Conversely, the $2.80 call option primarily sees selling activity, reinforcing expectations for higher short-term price targets.
Ripple's Banking License Application
Ripple's application for a national banking license enhances institutional investor confidence. CEO Brad Garlinghouse highlighted that approval would bring both state (NYDFS) and federal oversight, potentially setting a new trust standard in the stablecoin market. Market participants believe this regulatory framework could expand the utility areas for the XRP coin.
Current Outlook of the XRP/BTC Pair
Since the peak in April, the XRP/BTC pair on Binance has been limited by a narrowing falling wedge formation. The price breakout above the upper trend line on July 2 indicates a loss of seller strength and a shift in market dynamics favoring buyers. Despite the fact that the 50 and 100-day simple moving averages remain below the 200-day average with a downward inclination, the technical breakout and ETF approval expectations support upward potential for XRP.
The increasing interest in options, positive forecasts for potential ETF approval, and Ripple's banking license application indicate potential growth for XRP and strengthened investor confidence.
