XRP Faces Uncertainty in May Amid Increasing Optimism from Bullish Investors

XRP Ends May With Mixed Signals Amid Strong Bullish Options Activity

XRP, the native token powering Ripple’s cross-border payments infrastructure, closed May showing signs of uncertainty on the price charts, but options market activity reveals an underlying bullish conviction.

Throughout May, XRP formed a classic “doji” candlestick with a pronounced upper wick, indicating buyers pushed prices up to $2.65 before sellers regained control, bringing the price back near its opening level for the month. This pattern, often interpreted as market indecision, suggests the momentum from the April recovery rally off $1.60 may be waning.

Consistent with this, some market participants sought protection against downside risk by purchasing $2.40 strike put options expiring May 30, signaling caution among traders.

Despite the indecision in price action, open interest data on Deribit tells a different story. The majority of options activity remains concentrated in call options with strike prices ranging from $2.60 to over $3.00, highlighting continued optimism in XRP’s medium-term prospects.

Luuk Strijers, CEO of Deribit, noted, “Open interest in XRP options is increasing steadily, with a strong cluster in the $2.60 to $3.00+ call strikes. This reflects ongoing bullish sentiment, even as the spot price trades around $2.16.”

Among the most notable strikes, the $4 call option holds the largest notional open interest at $5.39 million, followed closely by the $3 and $3.10 strikes, each exceeding $5 million. Overall, monthly notional volumes for XRP options range between $65 million and $70 million, with over 95% traded on Deribit.

Bullish sentiment is supported by XRP’s growing role in streamlining cross-border transactions, an area where Ripple continues to gain traction. The global B2B cross-border payments market is projected to expand to $50 trillion by 2031, a 58% increase from 2024.

Additionally, anticipation of a U.S. spot XRP ETF and XRP’s adoption as a corporate treasury asset continue to underpin positive market expectations.