Ripple Update: Concerns Over XRP Decline Remain Amid ETF Hopes, According to Options Data

XRP may be the next cryptocurrency to secure a spot ETF listing in the U.S., following bitcoin (BTC) and ether (ETH), according to analysts this week. However, the Deribit-listed options market paints a different picture. At the time of writing, put options tied to XRP on Deribit were trading at higher prices than call options across various timeframes, as reported by Amberdata. This trend reflects ongoing concerns about potential price declines.

Put options serve as a form of insurance against price drops, which traders opt for when they aim to hedge or capitalize on anticipated declines. The preference for puts was evident due to negative skews across the observed timeframes. Options skew indicates the difference in demand for calls compared to puts, revealing more interest in protective measures.

XRP recently broke out from an ascending wedge pattern early Wednesday, suggesting a possible re-test of previous lows around $1.6. Analysts noted earlier this week that XRP boasts a comparatively robust order book depth, allowing for easier execution of large trades at stable prices, especially in contrast to tokens like Solana’s SOL. This characteristic positions XRP as a strong candidate for forthcoming spot ETF approval in the U.S.