Cryptocurrency regulation impact is making waves in the crypto market, sparking interest in XRP. In the past 24 hours, XRP has surged over 3.5%, with Deribit-listed options indicating bullish dynamics. This trend reflects growing anticipation surrounding regulatory frameworks and the potential approval of a spot ETF in the U.S.
According to Amberdata, since July 1, higher-level call options on XRP with $3 and $4 strikes have dominated trading volumes. The most traded options are linked to a July 25 expiration, and a September 28 call with a $2.80 strike is also popular among traders.
Cryptocurrency Regulation Impact on Market Trends
Call options in the crypto realm grant buyers the ability to purchase underlying assets at specific future dates and predefined prices, expressing optimistic market sentiments. In the case of XRP, the dominance of $3 strike call options underscores an investor bet that the cryptocurrency’s spot price will exceed this level by July 25.
Deribit markets have seen a notable flow, with buy trades contributing significantly to the increased volume for the $3 calls. Over 2 million contracts have been transacted in buy trades in just 24 hours. Conversely, activities around the $2.80 strikes have been more seller-oriented.
Expectations for the debut of a spot ETF in the U.S. are bolstering this bullish sentiment. Bloomberg analysts estimate a 95% probability of approval from the SEC, a factor driving excitement in the crypto community.
Ripple, a fintech company leveraging XRP for international transactions, recently applied for a national banking charter. CEO Brad Garlinghouse highlighted the move as a potential industry-first in establishing both state and federal oversight, thus enhancing trust in stablecoin markets.
XRP/BTC breakout signals further potential growth. The token has moved out of a falling wedge, a bullish reversal pattern. Converging trendlines, indicative of waning seller power, suggest a bullish uptick as the pair moves above the upper trendline, reinforcing the positive outlook.
The XRP/BTC pair remains promising despite bearish signals from the 50-day and 100-day simple moving averages recently crossing below the 200-day SMA. Moving averages, being lagging indicators, typically play a secondary role compared to fresh breakout patterns.
While market conditions continue to evolve, staying informed on cryptocurrency regulation impact is crucial for navigating these dynamic shifts.
Read more: Ripple Applies for Federal Bank Trust Charter, XRP Jumps 3%
At Bakara Invest, our analysis suggests that following regulatory updates and the evolving landscape of cryptocurrency regulation impact will be crucial for informed market positions and strategy development.
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