XRP Traders Price in Huge Move Over Next Seven Days
XRP traders are bracing for potentially significant price movements in the coming week, according to fresh options data from Coinbase Markets. The exchange compared the seven-day move implied by options prices with each cryptocurrency's own typical seven-day move. XRP showed the largest gap, with its options-implied seven-day move being 1.54 times its historical median move.
For context, this means that traders are pricing in a much larger move than usual for XRP. The current options-implied move is approximately 7.7%, which corresponds to about 11 cents in either direction. This figure comes from the volatility being priced into at-the-money options.
A higher implied-volatility reading usually means that traders are willing to pay more for options protection or speculation. Call buyers might be preparing for an upside breakout, while options buyers need sufficiently large realized movement to justify paying elevated premiums.