Bullish Wedge in XRP/BTC Pair Fuels $3 XRP Speculation Across Derivatives Markets.

XRP $3 Calls Dominate Derivatives as XRP/BTC Breakout Hints at Further Gains

XRP climbed over 3.5% in the past day, reflecting growing optimism in the crypto space, with significant activity emerging in its options market on Deribit.

Data from Amberdata shows traders have been particularly focused since July 1 on call options expiring on July 25 at strike prices of $3.00 and $4.00, as well as the $2.80 calls set for September 28. This signals increasing confidence among investors that XRP might push higher.

Call options grant traders the right—but not the obligation—to purchase XRP at a specific price before expiry, making them popular among those anticipating price rises. For example, buyers of the $3 call expect XRP to trade above that level before the July 25 deadline. On Deribit, each contract represents one XRP.

Analysis of trading volumes reveals that the $3 strike has attracted notable interest, with approximately 2 million contracts purchased over the last day. Meanwhile, traders have largely sold or written calls at the $2.80 strike.

The $3 call has also registered the biggest increase in open interest over the past week, showing how traders are positioning for potential further upside.

This surge in options activity coincides with mounting speculation about a spot XRP ETF launching in the U.S. Bloomberg analysts Eric Balchunas and James Seyffart recently estimated a 95% chance that the SEC will approve such a fund, boosting confidence in XRP’s prospects.

Further lifting sentiment, Ripple—the company that leverages XRP for cross-border payments—announced on Wednesday that it has applied for a national banking charter from the Office of the Comptroller of the Currency (OCC).

“If we’re granted approval, we’d fall under both state regulation via NYDFS and federal oversight, setting a new level of trust in the stablecoin market,” Ripple CEO Brad Garlinghouse shared on X.

XRP/BTC Technical Pattern Signals Bullish Reversal

Technically speaking, the XRP/BTC pair on Binance has broken out of a falling wedge pattern, indicating that XRP might continue to gain strength against bitcoin.

A falling wedge is typically a bullish chart pattern defined by two converging downward-sloping trendlines, suggesting sellers are losing momentum. A breakout above the upper boundary often confirms a change in market sentiment.

XRP/BTC has recently moved above the wedge’s resistance level, signaling that the downward trend since April’s highs could be ending and that a renewed upward push might be underway.

However, caution remains among traders, as key indicators like the 50-day, 100-day, and 200-day simple moving averages (SMAs) still reflect a bearish outlook. Both the 50- and 100-day SMAs continue to trend lower below the 200-day SMA. Still, moving averages are lagging indicators and can often trail significant price shifts like the one currently unfolding in the XRP/BTC market.