XRP to Hit $1.10? Deribit Exchange Sees 4.3 Million Contracts Betting on Price Surge
The price of XRP has remained mostly stable in the past 24 hours, with its move to $0.5684 coming as the crypto market gains by 1% today.
XRP now sits on a 13.5% increase in a week and a 7% rise in the past month, although it remains down by 10% in a year.
This is disappointing performance, especially after Ripple settled with the SEC for only $125 million last week, yet trading data suggests that XRP may see a strong rise very soon.
Indeed, Deribit has witnessed a spike in call options for XRP with a strike price of $1.10, meaning that growing numbers of traders are betting that the altcoin will reach and pass this level in the near future.
XRP’s chart looks similar to that of many other coins today, with its indicators showing the token in a middling position that is more or less equally consistent with more falls or more rises.
For instance, its 30-period moving average (orange) has been level with its 200-period average (blue) for a couple of days now, so a move either above or below the longer term average should be incoming.
At the same time, XRP’s relative strength index (purple) is hovering around the 50 level, as if traders aren’t entirely sure what to do with the coin at the moment.
But what’s interesting is that XRP’s support (green) and resistance (red) levels are steadily verging towards each other, forming a pennant.
This usually indicates that a big move is coming, with the aforementioned rise in call options suggesting that many traders believe this move will be upwards.
There is very high activity in call options on XRP with a strike of $1.1 on the Deribit exchange. pic.twitter.com/wslJTtxH4q
According to the latest data from Deribit, there are now 4,452,000 open contracts targeting the $1.10 price.
This is a very
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