Key Takeaways
As the deadline for the Securities and Exchange Commission (SEC) to submit its opening brief in the lawsuit against Ripple approaches on March 22, the XRP derivatives market is exhibiting signs of volatility.
With new trading opportunities on Binance with XRP USDT options, it might give some much needed push to the crypto.
XRP derivatives data on CoinGlass reveals that the trading volume has seen a significant decrease, dropping by approximately 30% at press time. However, open interest—a measure of the total number of outstanding derivative contracts that have not been settled—has seen a slight increase falling trade volume.
Notably, options volume have plummeted while options open interest has risen at the time of writing (March 8 2024). This data suggests that, while fewer new options are being traded, those holding options are choosing to maintain their positions, possibly in anticipation of new developments.
The imbalance between long and short positions has been stark on March 7. Short positions exceeded $1 million compared to long positions close to $670,000. The figure indicates a bearish sentiment among traders, possibly due to uncertainties surrounding the lawsuit.
In a positive development, Binance announced the launch of XRP USDT options, scheduled for March 11, 2024. With more trading options like European-style options contracts, Ripple investments could see a push.
Meanwhile, allegations that Ripple manipulated its crypto’s market with bots have once again become part of community debate.
Previously, Ripple CTO David Schwartz denied these allegations. Recently, an Ripple community member named Sherrie, also emphasized the legality of Ripple’s operations and its compliance with market regulations on Twitter, countering claims of illicit activities.
Recent activities by XRP whales, including a massive transfer of 300 million XRP from Binance to an unknown wallet, have fueled interest. Such transactions can suggest that large players have confidence in Ripple’s prospects despite the ongoing legal and market uncertainties.
The XRP derivatives market suggests turbulent waters as the SEC-Ripple lawsuit deadline looms. Despite a bearish trend in trading patterns, new trading avenues like Binance’s XRP USDT options and whale accumulation, hint at longer-term confidence.