Crypto enthusiasts are going all in on XRP. The digital asset, once mired in legal troubles, is now the talk of the town. Why? A flood of traders are wagering it'll hit $1.10 soon.
XRP's price has barely budged in the last day. It's sitting at $0.5684. The broader crypto market is up 1%.
Over the week, XRP has climbed 13.5%. Monthly gains stand at 7%. But zoom out, and it's down 10% year-on-year. Not great, Bob.
Ripple, the company behind XRP, recently settled with the SEC for a mere $125 million. You'd think this would send the price soaring. Nope.
But here's where it gets juicy. Deribit, a crypto derivatives exchange, has seen a massive spike in call options for XRP. The strike price? $1.10.
The charts paint a murky picture. XRP's indicators are all over the shop. It could go either way, really.
Take the moving averages. The 30-day and 200-day lines are playing footsie. A breakout could be on the cards.
The relative strength index is stuck at 50. Traders seem to be twiddling their thumbs.
But hold up. The support and resistance levels are converging. This often signals a big move is coming. And those call options? They're hinting it might be upwards.
A tweet from user @NekozTek spilled the beans. "There is very high activity in call options on XRP with a strike of $1.1 on the Deribit exchange," they wrote.
Deribit's data backs this up. There are now 4,452,000 open contracts targeting the $1.10 price. That's a lot of bullish bets.
XRP's been a bit of a laggard lately. But with Ripple's legal woes in the rearview mirror, things could be looking up.
The company's just inked a deal with Dubai's financial innovation hub. They're aiming to boost blockchain adoption in the Middle East.
Stuart Alderoty, Ripple's Chief Legal Officer, dropped a bombshell on CNBC. He claimed the SEC now wants to work with Ripple on a potential XRP ETF approval.
If Ripple keeps expanding and an ETF gets the green light, $1 could be in the cards. But in this market, who knows?