A Growing Number of Cryptocurrency Investors Are Betting That the Price of the XRP Token Will Hit $5 in Coming Months

A growing number of cryptocurrency investors are betting that the price of the XRP token will hit $5 in coming months.

A growing number of cryptocurrency investors are placing bets that the price of the XRP token will hit $5 in coming months.

Currently $5 call options on XRP are the biggest bet taking place on Deribit, a leading cryptocurrency futures and options exchange. The bullish bets come despite ongoing volatility in the crypto market, including for XRP.

The price of XRP, a payment-focused cryptocurrency, peaked at $3.40 this January and has since fallen nearly 30% to trade around $2.50. Nearly $4 million worth of call options focused on XRP's price reaching $5 have been placed, according to Deribit.

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Call options are bets that a security's price will rise within a specified period of time. Bullish call options related to other cryptocurrencies such as Bitcoin (BTC) -0.17% and Ethereum (ETH) 0.07% have also been rising following a steep selloff in digital coins and tokens.

XRP is the cryptocurrency of Ripple Labs, a U.S.-based technology company that offers enterprise blockchain products on the XRP Ledger and other digital networks. The price of XRP has risen 292% over the last 12 months to trade at $2.49 per token.

Is XRP A Buy?

Most Wall Street firms don't offer ratings or price targets on XRP, so we'll look at the crypto's three-month performance instead. As one can see in the chart below, the price of XRP has declined 1.40% in the last 12 weeks.