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- XRP traders are holding firm despite a 34% drop, with a $5 call option dominating Deribit’s market at $4 million.
- Analysts predict a potential 60-84% surge, citing bullish patterns and key breakouts that could push XRP past $5.
XRP has been on a wild ride, with traders eyeing the elusive $5 mark. After reaching a high of $3.29 in mid-January, the price has tumbled 34% to $2.48. Yet, despite that setback, traders are not backing down. On Deribit, a leading crypto options exchange, the $5 call option is dominating the market.
The open interest on that strike sits at a whopping $4 million, making it the most significant bet among all XRP options. However, this does not necessarily mean traders are overwhelmingly bullish. Many are using a common strategy to hedge risks while trying to turn a profit.
The Popular Strategy Driving the $5 Bet
According to Lin Chen, Deribit’s Asia Business Development Head, a large chunk of these trades involves a technique called covered calls. He explained that many traders are selling high-level out-of-the-money (OTM) calls while holding XRP. This strategy allows them to collect premiums without taking on excessive risk.
This method generates additional yield on top of traders’ XRP holdings. It is not a new concept—traditional markets and other cryptocurrencies, including Bitcoin and Ethereum, have long seen similar tactics in action.
While the setup suggests traders are willing to bet on higher prices, it does not guarantee an all-out rally. Still, some market analysts see a major surge coming, pointing to bullish technical signals forming on XRP’s price chart.
Analysts Predict a Breakout Toward $5
Crypto analyst Worlds of Charts has a bold outlook, expecting XRP to rally by 60.36% in the coming weeks. The reason? A breakout from a descending trendline could trigger heavy buying pressure. According to the analyst, if the momentum builds, XRP could see a strong move toward the $5 mark.
Another analyst, Ashleyez, also believes a rally is brewing. He suggests that XRP is consolidating within a bullish pennant pattern—a formation that often signals an impending price explosion. A clean breakout could lead to an 84% surge, pushing XRP past $5.00. Key price zones to watch include a support level at $2.00 and resistance at $4.90.
Volume indicators further support a potential upswing, as increased activity hints at growing interest from buyers. The current trading range sits between $2.2202 and $2.7250, and any breakout could confirm the trend reversal.
What Needs to Happen for XRP to Hit $5?
A successful push beyond $3.50 would strongly confirm a bullish trend, putting XRP on the fast track toward $5.00. Analysts argue that if the price remains above $2.50, it could target $4.17 next. However, failure to break resistance could mean a retest of $1.76 before another attempt at higher levels.
Market sentiment has been further boosted by Donald Trump’s recent announcement, which seems to have sparked renewed confidence in the crypto space. As a result, XRP has shown resilience compared to other altcoins, reinforcing the bullish case.
