Traders expect the SEC and Ripple dispute to be coming to an end as they place year-end bullish bets in XRP options.
The payments-centred XRP exploded in September 2022, eclipsing larger cryptos like Bitcoin. In fact, near the end of September, the price of XRP demonstrates about 25% of gain, and the crypto is up by 41% in the past month. Now some traders are taking up bullish bets in the crypto options market, expecting steady profits into the end of 2022.
XRP price chart in the past 24 hours
XRP ranks sixth among cryptocurrencies by market cap at the moment, and the price of the crypto is up by 12.57% in the past 24 hours.
Back in December 2020, the SEC (Securities and Commission) had sued Ripple Labs over violating security regulations and raising $1.3 billion through XRP sales. The token had naturally crashed following the event, sending the crypto market overall into a frenzy.
Now in the past week, the SEC and Ripple Labs have filed a summary judgement, which has led many into hoping for a final ruling by the end of 2022. That would certainly tone down the general uncertainty of traders regarding XRP by several notches.
As Dick Lo, the founder and CEO of Hong Kong-based TDX Strategies, states: “We have seen interest in buying XRP year-end upside call options in anticipation of a resolution in the ongoing lawsuit with the U.S. Securities and Exchange Commission.”
XRP is breaking out of a months long bearish trend
Regardless of the outcome, this particular event has surely led XRP into showing bullish signs, after getting out of a 10-months long bearish pattern. As Lo concludes: “If the ruling is in Ripple’s favour, XRP could rally quickly to [68 cents] and then potentially to [93 cents] (Fibonacci retracement levels).”