XRP Whale Activity Slows, Here’s What Options Data Signals

XRP is consolidating in a tight $1.36-$1.40 range, showing reduced volatility amid broader crypto market selloffs. On-chain data signals a notable slowdown in XRP whale activity, but options data shows traders are still upbeat as the market awaits the key monthly options expiry.

XRP Whale Flow Records Gradual Declines

CryptoQuant’s Whale Flow 30 DMA metric revealed XRP whale activity continued to decline since May-start. The whale accumulation has dropped to the March-level after hitting a multi-month high recently.

Notably, whale flow is currently nearly 4 million XRP per day. It has dropped more than twice from 9-13 million daily whale activity. This indicates a shift in whale behavior amid rising uncertainty and a broader crypto market crash.

The volume of whale to exchange also confirmed a slowdown despite XRP whale inflows to Binance reaching a four-year low. While the slowdown in whale activity sparks concerns, this is not the distribution phase.

Whale activity also reduces when retail activity rises. The Senate Banking Committee advancing the CLARITY Act could be the driving factor for declining whale activity in the last few weeks.

CryptoQuant’s Retail-to-Whale Ratio 30DMA metric confirmed an increase in retail activity and a decline in whale activity. The ratio has increased from 0.7 in April to 1.14 this month.

XRP Options Data Signals Traders Still Bullish

While whale activity is slowing despite Ripple’s push for XRP Ledger upgrade, options traders remain upbeat on XRP. More than 1,800 options with a notional value of $2.5 million are set to expire this Friday, with a max pain price of $1.42. In the last 24 hours, call volume remains significantly higher compared to put volume, with a bullish put/call ratio of 0.69.

However, traders will adjust positions based on next week’s May 29 monthly expiry. Deribit data shows traders are betting on $1.48 and $1.55 calls for May 29 options expiry. The max pain price for the May 29 options expiry is $1.40. This signals high odds of a potential rise in XRP price towards $1.40.

Laevitas data revealed that XRP options open interest climbed above 50 million after almost 2 months. This signals renewed strength among options traders for upside momentum in XRP price. In contrast, options traders are bearish on Bitcoin for the monthly expiry.

XRP price is bouncing off the lower Bollinger bands on the daily chart, currently trading at $1.36. Trading volume has decreased by 8% over the last 24 hours, but traders need to watch for $1.39 and $1.43 for picking up upside momentum.