XRP Shows Indecision in May Amid Rising Bullish Options

XRP, the digital asset closely linked with Ripple, experienced a notably uncertain May, yet investor sentiment as reflected in options markets suggests a strong undercurrent of optimism remains intact.

As the blockchain-powered cryptocurrency used primarily for real-time cross-border payments, XRP saw its monthly candlestick form what’s known in technical analysis as a “doji.” This doji pattern, characterized by a long upper shadow, signals a tug-of-war between buyers and sellers, ending with no clear victor. According to TradingView, the price attempted a rally to $2.65 but eventually fell back, closing close to May’s opening levels.

The long upper wick demonstrates that bullish forces momentarily pushed XRP higher, only to be met by strong bearish pressure which drove prices down again. This indecision often indicates the potential for a trend reversal, particularly when following a sustained rally like the one from early April lows near $1.60.

These technical signals led some traders to hedge their positions by purchasing put options with a $2.40 strike price set to expire at the end of May. A put option serves as a form of insurance against declining prices, reflecting caution among sections of the market.

Resilient Bullish Sentiment in Options Market

Despite the uncertain market structure, data from the Deribit exchange reveals lingering bullish sentiment. Open interest in XRP options—specifically high-strike call options—has significantly increased. For crypto options, Deribit remains the top platform, and the current data highlights growing investor alignment with an upward trajectory for XRP.

“XRP open interest on Deribit is steadily climbing, with the highest density of option strikes lying between $2.60 and above $3.00, reflecting a prevailing optimistic view despite the spot price hovering at $2.16,” noted Deribit CEO Luuk Strijers in remarks to CoinDesk.

This bullish concentration is underscored by the $4.00 call option, which leads the board with a notional open interest of $5.39 million. Other popular bets include calls at the $3.00 and $3.10 levels, each commanding over $5 million in notional OI. These positions indicate strong confidence in XRP’s upward potential.

XRP options activity is currently dominated by June and September expiries. Monthly volumes in notional terms range between $65 million and $70 million, with over 95% of the action happening on Deribit, according to Strijers. This volume underlines the scale of institutional and retail interest in XRP’s future performance.

This optimism is not limited to technicals or speculation. XRP’s core utility—as a low-cost, high-speed intermediary for global payments—remains compelling. Ripple continues to advocate for its use in solving long-standing inefficiencies in SWIFT-based international banking systems. These efforts are gaining attention, especially in light of projections that peg the B2B cross-border payments sector to swell to $50 trillion by 2031, up from around $31.6 trillion in 2024.

Additionally, market chatter surrounding the potential approval of a spot XRP exchange-traded fund (ETF) in the United States has fueled hopes of institutional adoption. This is contributing to XRP being increasingly explored as a corporate treasury asset, further legitimizing its role in enterprise-level finance.

Related: Expert Advice: Sell XRP If You’re Confused

In summary, while XRP’s technical charts for May suggest a pause or potential reversal, the derivatives market presents a counter-narrative—one marked by optimism and strategic bullish positioning. With structural fundamentals and macroeconomic drivers aligning in its favor, XRP remains a token worth monitoring as it navigates its complex market dynamics.