XRP $3 Bets Dominate Trading Volumes as XRP/BTC's 'Wedge' Suggests Further Rally

Payments-focused cryptocurrency XRP (XRP) has risen by implicit 3.5% successful the past 24 hours, with measurement successful the Deribit-listed options marketplace suggesting bullish expectations.

Since July 1, higher-level July 25 telephone options astatine strikes of $3.00 and $4.00 and the Sept. 28 expiry telephone astatine the $2.80 onslaught person emerged arsenic the astir traded bets, according to information root Amberdata.

A telephone enactment gives the purchaser the close to bargain the underlying plus astatine a predetermined onslaught terms astatine a aboriginal date. The enactment represents a bullish presumption connected the market. For instance, the $3 onslaught telephone purchaser is betting that XRP's spot terms volition apical that level by July 25. On Deribit, 1 options declaration represents 1 XRP.

A person look astatine the flows reveals that the higher measurement ranking for the $3 calls chiefly stems from bargain trades. In the past 24 hours, the $3 onslaught telephone has seen 2 cardinal contracts alteration hands successful capitalist bargain trades (market makers connected the other side). Conversely, investors person been mostly sellers oregon writers successful the $2.8 call.

The $3 telephone is besides the astir fashionable stake successful presumption of the summation successful unfastened interest, oregon the fig of progressive oregon unfastened contracts, successful the past 7 days.

The accrued enactment successful the higher onslaught calls follows strengthening expectations for a spot ETF debut successful the U.S. According to Bloomberg's analysts Eric Balchunas and James Seyffart, the probability that the U.S. SEC volition o.k. a spot XRP ETF present stands astatine 95% – astir a done deal.

On Wednesday, fintech steadfast Ripple, which utilizes XRP to facilitate cross-border transactions, announced that it has applied for a nationalist banking licence astatine the Office of the Comptroller of the Currency (OCC).

"If approved, we would person some authorities (via NYDFS) and national oversight, a caller (and unique!) benchmark for spot successful the stablecoin market," Ripple's CEO Brad Garlinghouse said connected X.

XRP/BTC breakout

XRP's bitcoin-denominated price, represented by the Binance-listed XRP/BTC pair, whitethorn beryllium headed higher, having breached retired of a falling wedge pattern.

The falling wedge is simply a bullish reversal pattern, characterized by 2 converging trendlines that bespeak a narrowing scope of terms movement. The converging quality of trendlines suggests that sellers are dilatory losing steam. Hence, a consequent determination supra the precocious trendline is said to corroborate renewed bull dominance.

XRP/BTC has risen supra the precocious trendline, confirming the bullish breakout. The signifier indicates that the correction from the April highs has ended and the broader XRP bullish inclination has resumed.

While the wedge breakout indicates that the way of slightest absorption is connected the higher side, fashionable averages, 50-day, 100-day and 200-day SMAs disagree.

Both the 50- and 100-day SMAs are trending south, having precocious crossed bearishly beneath the 200-day SMA. Note, however, that moving averages are lagging indicators and instrumentality backseat to the bullish wedge breakout.

Read more: Ripple Applies for Federal Bank Trust Charter, XRP Jumps 3%