Ripple’s native token XRP’s 24-hour trading volume has skyrocketed 200% on Tuesday, reaching a weekly high of $3.03. Its daily trading volume was at $1.7 billion this week and has climbed above the $5 billion threshold. The dramatic rise comes after the XRP call options are expiring in September, leading to investors booking profits and pulling out from the trade. The call options were mostly placed in June when its price was hovering at the $2.10 mark.
Options traders placed strike calls on XRP for $3, $3.5, and $4 for a contract expiring in September. According to the data from Deribit Amberdata, around 2 million contracts are set to expire before September 28, 2025. Therefore, contract traders are changing hands as the day nears and booking profits, leading to its trading volume soaring 200%.
As the sell-off continues, XRP has fallen below the $3 level on Wednesday and is rangebound at $2.95. XRP could most likely continue to dip until the end of September, till all the options expire. It is advised to remain on the sidelines at this point, as Ripple’s native token would experience volatility.
Also Read: XRP Short-Term Prediction: Analyst Highlights Key 7-8 Day Setup
Will Ripple’s XRP Climb Above $4?
There is less chance for Ripple’s XRP to zoom ahead in price and climb above the $4 mark. In June, when options traders placed strike calls for $4, the maximum it reached was $3.65. That was the altcoin’s new all-time high, and that was when the money flowed in. The money is now flowing out, which means the token might not surge like it did between June and August.
After it stabilizes by the month’s end, it is advised to take an entry position if it dips below the $2.70 range. This would be a better entry position as XRP would be available at a low point. Holding on from here to the long term could deliver the rewards.
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