Isabella García
XRP has recently emerged as a potential candidate for the next U.S.-based spot ETF, following the launch of similar products for Bitcoin (BTC) and Ethereum (ETH), according to several crypto analysts this week. Yet, despite the enthusiasm in analyst circles, the options market on Deribit tells a more cautious story.
Fresh data from Amberdata indicates that put options on XRP are currently priced higher than call options across various time horizons on Deribit. This pricing pattern typically reflects increased demand for downside protection, hinting at bearish expectations among traders.
Put options are commonly used as a hedge against price declines, and higher premiums suggest that market participants are bracing for potential downside risk.
The negative skew seen across several expiries further strengthens this sentiment. Skew refers to the difference in implied volatility between puts and calls — when it turns negative, it means traders are more eager to buy puts than calls.
XRP Breaks Technical Support Amid Weak Price Action
On the technical front, XRP fell below an ascending wedge pattern on Wednesday, a move that often precedes further declines. Analysts suggest that the token could revisit support levels near $1.60 in the short term if bearish momentum continues.
Liquidity Metrics Still Favor XRP Over Competitors
Despite weak price action, XRP’s order book depth remains relatively strong, especially when compared to other altcoins like Solana (SOL), according to analysts. This suggests that XRP is better positioned to handle large trades without dramatic price swings, making it an attractive asset from a liquidity standpoint.
This advantage, coupled with Ripple’s continued push for adoption in cross-border payment infrastructure, has led some experts to believe that XRP could be the next digital asset to secure approval for a spot ETF in the U.S.
