XRP Jumps 12% as Traders Position for High Volatility With Long Straddle Bets

XRP surged 12% in the past 24 hours to reach $3.32—its highest level since July 28—outpacing both bitcoin (BTC) and ether (ETH). The price rally appears to be fueled by increased institutional activity in the options market, particularly through large-scale volatility strategies.

On Deribit, traders executed notable block trades—over-the-counter transactions used to avoid disrupting the order book. One such trade included the purchase of 100,000 contracts of both call and put options expiring August 29 at a $3.20 strike, forming a long straddle. This strategy, which cost over $416,000 in total premiums, profits from large price swings regardless of direction. A similar straddle was seen at the $3.10 level.

“These trades reflect growing institutional appetite for XRP,” said Lin Chen, Head of Asia at Deribit. “XRP has outperformed BTC year-to-date, and the surge in option volumes has prompted us to launch year-end XRP contracts to meet demand.”

A long straddle is a neutral but aggressive volatility play. It’s typically used when traders expect a major catalyst but are uncertain about the direction of the move. Risk is limited to the total premium paid, while the profit potential is theoretically unlimited if the asset moves significantly in either direction.

Coincidentally, Thursday also saw a legal breakthrough in Ripple’s long-standing case with the SEC. Both parties agreed to withdraw their appeals, signaling an end to their high-profile legal dispute. Ripple uses XRP to enable cross-border settlements.

The renewed legal clarity, coupled with aggressive volatility positioning, suggests traders are bracing for big moves ahead—regardless of direction.