XRP, the cryptocurrency used by Ripple Labs for cross-border payments, has shown a sharp rise, reaching $3.36. The price increase is linked to trading activity in derivatives and the resolution of legal issues.
Price Dynamics of XRP
In the past 24 hours, XRP surged nearly 13%, marking its best position since July 28. At the time of writing, the token was trading at $3.36 with a 24-hour volume of $10.93 billion.
Institutional Interest and Trading Strategy
Recent growth was also fueled by increased trading activity on the Deribit exchange, where a trader executed a block trade of 100,000 August 29 expiry contracts at the $3.20 strike. This strategy, called a 'long straddle,' anticipates significant price swings. Lin Chen from Deribit noted a growing institutional demand for XRP options, prompting the exchange to launch year-end contracts.
Legal Clarity and Its Impact on XRP
On August 7, Ripple and the U.S. Securities and Exchange Commission agreed to dismiss their appeals in a long-running legal battle, removing uncertainty about XRP's regulatory status. This has instilled confidence in the market and attracted interest from major investors.
With the current legal clarity and increasing institutional interest, experts anticipate further volatility and possible price growth for XRP in the coming weeks.
