A growing number of cryptocurrency investors are betting that the price of the XRP token will hit $5 in coming months.
Currently $5 call options on XRP are the biggest bet taking place on Deribit, a leading cryptocurrency futures and options exchange. The bullish bets come despite ongoing volatility in the crypto market, including for XRP.
The price of XRP, a payment-focused cryptocurrency, peaked at $3.40 this January and has since fallen nearly 30% to trade around $2.50. Nearly $4 million worth of call options focused on XRP’s price reaching $5 have been placed, according to Deribit.
Bullish Bets
Call options are bets that a security’s price will rise within a specified period of time. Bullish call options related to other cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) have also been rising following a steep selloff in digital coins and tokens.
XRP is the cryptocurrency of Ripple Labs, a U.S.-based technology company that offers enterprise blockchain products on the XRP Ledger and other digital networks. The price of XRP has risen 292% over the last 12 months to trade at $2.49 per token.
Is XRP a Buy?
Most Wall Street firms don’t offer ratings or price targets on XRP, so we’ll look at the crypto’s three-month performance instead. As one can see in the chart below, the price of XRP has declined 1.40% in the last 12 weeks.
