XRP, the digital asset used by Ripple to enable seamless cross-border payments, closed May with signs of market indecision. Despite this, trading activity on Deribit, the leading crypto options exchange, indicates that bullish traders remain confident.
In May, XRP’s monthly candlestick formed a classic “doji” with a long upper shadow, signaling market hesitation. This doji suggests that while bulls managed to push prices up to around $2.65, sellers quickly rejected those levels, pulling the price back near where it started the month. Such candles after an uptrend often hint at exhausted buying momentum and the possibility of a price reversal.
Recently, traders have been hedging against potential declines by purchasing put options at the $2.40 strike price, expiring at the end of May. These options act as insurance against a drop in XRP’s price.
However, the overall outlook remains bullish. Data from Deribit shows increasing open interest in higher-strike call options, indicating persistent optimism among traders. Currently, XRP trades at approximately $2.16, but the highest concentration of open interest lies between $2.60 and over $3.00. Notably, the most popular strike is the $4 call option, with a notional open interest exceeding $5 million, alongside over $5 million each at the $3 and $3.10 strikes.
This bullish sentiment is fueled by XRP’s strong positioning as a cross-border payment solution and growing anticipation of a spot XRP ETF listing in the U.S. Additionally, XRP is gaining traction as a corporate treasury asset, further bolstering confidence in its future prospects.
Ripple emphasizes XRP’s potential to address inefficiencies in traditional SWIFT-based international payments. With the global B2B cross-border payments market projected to reach $50 trillion by 2031—up 58% from $31.6 trillion in 2024—market participants see significant growth opportunities for XRP and Ripple’s ecosystem.
Overall, while May ended with market signs of caution, the activity on Deribit and mounting institutional interest suggest that bullish traders are still optimistic about XRP’s trajectory in the coming months.
