Over the past 24 hours, XRP has experienced a notable price increase of approximately 12%, reaching $3.32—its highest level since July 28. During this period, XRP outperformed major cryptocurrencies such as Bitcoin and Ethereum. This upward momentum has been largely driven by sophisticated options trading activity on Deribit, where institutional traders have been employing a long straddle strategy to capitalize on anticipated volatility.
According to Deribit’s data, a prominent trader executed 100,000 call and put option contracts with a strike price of $3.20, set to expire on August 29. The long straddle approach involves purchasing both call and put options at the same strike price, positioning the trader to profit from significant price movements in either direction. A similar straddle was also placed at a $3.10 strike price. The total premium paid for these positions exceeded $416,000, signaling a strong expectation of increased volatility in XRP’s price going forward.
Lin Chen, Head of Asia Business at Deribit, noted that XRP has outpaced Bitcoin over the past year, and there has been a rise in block trades and institutional interest in XRP options. To meet growing demand, Deribit has introduced XRP options contracts extending through the end of the year. This surge in options activity coincides with a recent legal development: the U.S. Securities and Exchange Commission (SEC) and Ripple have agreed to withdraw their appeals in the Second Circuit Court, effectively bringing the years-long legal dispute that began in 2020 closer to resolution. This progress could clarify XRP’s regulatory status, paving the way for broader adoption and increased institutional participation globally.
The long straddle strategy is inherently non-directional, reflecting traders’ expectations of substantial price fluctuations regardless of direction—often in response to events such as court rulings or regulatory announcements. The heightened use of this approach in XRP markets highlights growing institutional interest and trading activity, likely driven by regulatory clarity and evolving market dynamics.
Source: binance
