XRP Options Market Signals Weakness Despite ETF-Driven Buzz

XRP ETF Speculation Builds, But Options Market Signals Caution

XRP is being eyed as a potential candidate for a U.S. spot ETF listing, following in the footsteps of bitcoin and ether. However, the options market is sending a mixed message, with traders maintaining cautious positions despite growing optimism.

Analysts have pointed to XRP’s strong order book depth, which allows for more efficient execution of large trades, as a positive sign for its liquidity and long-term stability. This strength has led to predictions that XRP could be the next cryptocurrency to gain approval for a spot ETF in the U.S., a move that would likely attract institutional investors.

Yet, the data from Deribit’s options market tells a different story. According to Amberdata, put options tied to XRP are trading at a higher premium than call options across various timeframes, signaling that traders are more concerned with potential price declines than anticipating price rallies.

This negative options skew suggests a general lack of confidence in XRP’s near-term prospects, with traders seeking to hedge against further losses. In particular, the breakdown of XRP from an ascending wedge formation earlier this week points to a possible retest of recent lows near the $1.60 level.

Despite the ETF excitement, XRP’s price movement and the options market’s current sentiment suggest that traders remain wary, with many positioning for downside protection rather than betting on immediate gains.