Ripple: Traders increasingly Bet on XRP crash
Traders increasingly placed bets that XRP would drop below $2 by mid-year.
Data from the cryptocurrency derivatives exchange Deribit indicates that many options contracts (financial instruments that grant the right to buy or sell an asset at a specific price) are focused on lower price targets for April and May. Glassnode, recent data suggests a potential drop in XRP’s price due to a slowdown in trading activity and a decline in capital inflows into the market.
This implies that more investors anticipate XRP to depreciate shortly. The short-term caution contrasts with an increase in cryptocurrency prices earlier this week, partly prompted by former US President Donald Trump’s announcement of a 90-day pause on new global tariffs.
XRP traded at $2.05 on Saturday and has fluctuated as much as 23 percent from a low of $1.65 to $2.16 in the past week.
However, many XRP traders are convinced the rally won’t last. The inability to interpret the omens in the current macroeconomic landscape may be causing that uncertainty. Even though the markets have recovered, XRP options traders seem more cautious than ever.
Trump’s 90-day tariff pause isn’t as effective as the markets believe, and coupled with recent weakness in the Treasury market is sending a recessionary signal
The macro backdrop remains bearish for crypto over the long term amid high uncertainty in the global economy. According to market analysts, the price may continue its downward trend since Trump’s inauguration and drop as low as $1
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