XRP Drop Concerns Remain Despite ETF Optimism, Options Data Shows
Recent XRP price movements point to a retest of levels around $1.60, despite significant order book depth.
Author: Omkar Godbole | Edited by: Parikshit Mishra Updated: Apr 17, 2025 1:08 pm Published: Apr 17, 2025 11:35 am
Key points:
- There is a bias towards XRP put options on options platform Deribit, indicating concerns about a possible price decline.
- Recent XRP price movements suggest a retest of lows around $1.6 is likely despite a deep order book.
Analysts this week claimed that XRP could be the next cryptocurrency to list a spot ETF in the US, following Bitcoin (BTC) and Ethereum (ETH). However, the options market on Deribit does not share this optimism.
At the time of writing, Deribit put options linked to XRP were trading at a premium to calls across several time frames, according to Amberdata, indicating ongoing downside concerns.
A put option provides protection against falling prices, and traders purchase them when they want to hedge or profit from an expected price decline.
The shortfall for puts was evident from the negative skews across all time frames. Option skew measures the implied volatility premium (demand) for calls relative to puts.
XRP broke out of a rising wedge on Wednesday morning, indicating the possibility of a retest of recent lows around $1.6.
Earlier this week, analysts noted that XRP has a relatively better order book depth, suggesting it can easily trade large orders at stable prices than is possible with SOL and other Solana tokens. This could mean that the payments-focused coin used by Ripple to facilitate cross-border transactions could be the next digital asset to receive spot ETF approval in the U.S.
