Massive 1M Block Trade of $4 XRP Calls Hits the Tape as Prices Tumble - Whale Accumulation Signal?
While retail panics, the big money moves.
A staggering 1 million XRP call options just flashed across trading screens—all targeting the $4 strike price as the digital asset bleeds value. This isn't random noise; it's institutional positioning at its most aggressive.
Smart Money vs. Weak Hands
While mainstream headlines scream about the price drop, sophisticated players are building leveraged long exposure. That massive block trade screams conviction—someone's betting six figures that XRP rips past $4 despite current weakness.
The Options Playbook Unpacked
Buying calls during a downturn isn't amateur hour. It's calculated risk-taking—positioning for explosive upside while volatility remains relatively cheap. These traders aren't hoping for a bounce; they're pricing in a potential moonshot.
Market Mechanics in Motion
Block trades this size don't happen in isolation. They move markets, create gamma exposure, and often precede major price movements. Market makers now face pressure to hedge, potentially accelerating any upward momentum.
Because nothing says 'financial innovation' like betting millions on digital tokens while traditional finance still can't agree on custody solutions.
The covered call strategy involves writing higher strike out-of-the-money call options against a long position in the spot market. This helps the investor earn an extra yield on top of the coin stash, which comes from the premium received for selling the call option. The setup, however, limits the potential upside gains.
The covered call strategy is popular among BTC holders, and its increasing adoption has contributed to a steady decline in implied volatility over the past two years.
XRP's price briefly fell to $2.94 on Monday, tracking the broader market swoon and has since stabilized just above $3. Prices hit a record high of over $2.6 last month, CoinDesk data show.
