Analyst notes bullish sentiment in the XRP derivatives market

Activity in XRP options and futures has surged amid the token’s rapid price gains. Key metrics point to investor optimism, Nansen analyst Nikolai Sondergaard told The Block.

“If you look at XRP options data, interest in call options significantly exceeds interest in puts, which confirms the market’s bullish tone,” the analyst emphasised.

A call option gives the buyer the right (but not the obligation) to buy the underlying asset at a preset price before the contract’s expiry date. A put option works similarly but gives the right to sell the asset.

Sondergaard also added that over the past day the put/call ratio has increased, indicating traders are stepping up hedging of long positions.

Open interest in XRP futures continues to set records. As the underlying rallies, the tally is approaching $8bn; up 46% since the start of the week.

Unity Wallet’s chief operating officer, James Toledano, told the publication that investors are awaiting regulatory clarity and that it matters.

“If an XRP ETF is approved, it could attract significant institutional investment and take the asset to new heights in 2025,” he said.

At the time of writing, XRP is trading around $3.15. Over the past seven days the asset has risen 31%, and its market capitalisation has exceeded $180bn, according to CoinGecko. 

On January 16, the Ripple token reached a seven-year high on several major exchanges, approaching $3.4.