Why XRP, already up 40%, just got a bullish signal from this key metric

7h ago•

bullish:

bearish:

XRP traders are buzzing with optimism about a potential price rally this quarter.

The cryptocurrency used by Ripple to facilitate cross-border transactions has jumped 40% in April, and traders seem to expect even more upside.

Data from Coinglass shows a big spike in XRP’s long–short ratio on perpetuals, or perps ― futures contracts with no expiry dates.

This ratio gauges trader sentiments, as a high number indicates that traders expect a price surge, while a low number implies the opposite.

For XRP, it’s almost a 3-to-1 ratio, which signals a bias towards bullish bets.

Flurry of signals

This contrasts with the data for other major cryptocurrencies. Ethereum and Solana’s perps data show a fairly equal appetite for longs and shorts. And for Bitcoin, the ratio is skewed to the shorts side.

But perps traders aren’t the only ones optimistic about XRP.

Activity on Polymarket, the crypto market’s crystal ball, indicates bettors expect XRP will reach $2.40.

That outcome is the most wagered bet for April’s XRP price action on the platform. If that happens, XRP would have notched a 5% uptick to end April.

Even the usually cautious options traders seem to have joined in the bullish wave. Data from Deribit shows that most traders expect XRP to trade between $2.23 and $2.7 at April’s close.

That’s a major change from previous data that skewed heavily to expectations of XRP not rising above $2.2 this month.

Leveraged funds

These signs of optimism for XRP come amid the announcement of two XRP futures products last week, from the CME Group and Coinbase.

Meanwhile, ProShares plans to launch two leveraged XRP exchange-traded funds. Earlier this month, agro-ETF issuer Teucrium debuted its own leveraged XRP ETF, becoming the first such investment vehicle for the Ripple-linked cryptocurrency in the US.

As for a spot XRP ETF, the Securities and Exchange Commission is still reviewing several applications. The agency has until mid-October to decide.