- XRP and Solana show bullish investor sentiment in crypto options markets.
- Bitcoin and Ethereum options present bearish to mixed risk sentiment.
- Risk reversal measures indicate traders expect price gains in XRP and SOL but caution on BTC and ETH.
- Perpetual futures funding rates for major cryptocurrencies remain neutral following a recent market drop.
- A recent crash wiped out $20 billion in leveraged futures, impacting trader confidence and sentiment.
XRP and Solana currently display positive sentiment among cryptocurrency investors according to an options strategy known as the 25-delta risk reversal. This measure, monitored on theDeribit exchange, signals bullish momentum in these two assets, unlike bitcoin and ether, which maintain more cautious or bearish outlooks.
The 25-delta risk reversal involves buying moderately out-of-the-money call options and selling put options or the reverse, revealing market expectations. Positive readings mean traders favor calls, anticipating price rises, while negative readings suggest more puts and bearish sentiment. Data shows that XRP and SOL have positive risk reversals across October, November, and December expirations.
This shift follows a spike in put option demand after the October 10 price crash, during which XRP fell to about $1.77 from $2.80 and Solana dropped to $188 from $220. Currently, XRP trades near $2.33 and Solana around $184. Meanwhile, bitcoin shows puts trading at a premium across all expiration dates through September 2026, indicating ongoing concerns about price declines. Ethereum’s options show bearishness up to December expiry, switching to bullish sentiment afterward.
Risk reversals are a common tool to gauge market views but may be less accurate for XRP and Solana due to their smaller options markets compared to bitcoin and ether. Bitcoin’s persistent put premium partly reflects the practice of call overwriting, where investors sell call options against their holdings to boost income, not necessarily bearish bets.
In contrast to the options market, perpetual futures for XRP, bitcoin, Solana, and ether show neutral funding rates. These rates, charged between traders holding long and short positions to keep futures aligned with spot prices, hover near zero, indicating balanced demand. This neutrality represents traders’ cautious stance following a market event that liquidated $20 billion in leveraged bets.
Perpetual futures allow trading without expiration dates, and their funding rates provide real-time sentiment signals. Positive rates mean more demand for bullish exposure, while negative values suggest the opposite. The current low and even funding rates suggest traders are hesitant to leverage new bullish positions after recent losses.
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