XRP, the digital asset powering Ripple’s cross-border payments platform, ended May with a doji candlestick formation, signaling market indecision. Despite this technical red flag, bullish sentiment remains strong in the options market, highlighting a divergence that could shape XRP’s near-term trajectory.
Technical Picture: A Doji Signals Bull Exhaustion
According to TradingView, XRP’s monthly chart closed with a doji candle featuring a long upper shadow. Prices rallied to a high of $2.65 but ultimately pulled back near the month’s opening level, suggesting that bulls failed to sustain momentum.
Doji formations after an uptrend are often interpreted as signs of bull exhaustion. XRP’s rally from early April lows near $1.60 may be losing steam. Some traders are already hedging against downside risk by purchasing $2.40 strike put options—a move signaling growing caution.
Deribit Data Shows Bullish Bets Still Dominate
Despite the uncertain technical outlook, Deribit options data paints a bullish picture. Open interest is concentrated in higher-strike call options, especially between $2.60 and $3.00+, suggesting traders are positioning for upside moves.
- $4 call option: Most popular, with $5.39M in open interest
- $3 and $3.10 calls: Each exceed $5M in open interest
- Over 95% of notional open interest ($65–$70M) trades on Deribit
Luuk Strijers, CEO of Deribit, emphasized this optimism, noting the steady increase in XRP options open interest, with traders betting on continued price appreciation.
What’s Fueling the Bullish Mood?
Several key drivers may be underpinning the optimistic sentiment:
- Expectations of a U.S. spot XRP ETF, following the SEC’s evolving stance on crypto products.
- Ripple’s continued expansion in the global cross-border payments sector.
- Growing interest in XRP as a corporate treasury asset, reflecting its increasing institutional appeal.
- A projected rise in the B2B cross-border payments market to $50 trillion by 2031, up from $31.6 trillion in 2024, offering significant room for XRP’s utility to grow.
Conclusion: A Divergence Worth Watching
While XRP’s doji candlestick suggests short-term caution, options market data shows traders are still betting big on a bullish future. Whether XRP breaks higher or faces a pullback depends on broader market sentiment, ETF approval prospects, and Ripple’s execution in the payments space.
Traders should watch the $2.40–$2.65 range closely—a break in either direction could determine the next major move.