XRP Short-Term Volatility Surges to 18-Point Swing

Ripple (XRP) experienced a maximum 18-point movement in the three-day term short-term implied volatility curve within its options market. While expectations for short-term option price volatility were significantly adjusted, indicators across different maturities did not point in the same direction.

CryptoBriefing reported that Binance's XRP-USDT options' at-the-money (ATM) implied volatility reached 60.70%. The ATM implied volatility changed by 12.07 points over 24 hours and 11.20 points over four hours. The 25 delta put-call skew, which reflects the difference between put and call option volatilities, rose 16.85 points over 24 hours, indicating relatively higher put volatility.

A rising put-call skew can occur alongside demand to hedge downside risk or adjust existing positions. However, no information was provided linking this movement to specific trading activity by market participants. Binance explains implied volatility as the expected future price fluctuation reflected in option pricing, noting it measures the magnitude of expected price swings rather than direction.

CryptoBriefing also noted that on November 11, XRP's one-month ATM implied volatility stood at 53%, compared to a 30-day realized volatility of 88%, showing a 35-point difference. This figure is in the bottom 7th percentile over a two-year observation period.

PandaBull reported Binance XRP-USDT options' one-day maturity ATM implied volatility at 73.87% and 25 delta put-call skew at 24.05% as of November 11 at 11:54 a.m. KST. Meanwhile, the 18-day maturity skew was -10.37%. These figures demonstrate how option supply and risk perception can vary by maturity and strike price for the same asset.

Deribit stated that on November 13, XRP's one-week 25 delta risk reversal shifted from a call option bias to a balanced direction, while the two-week period still showed a call premium. This suggests it is difficult to interpret the recent short-term volatility expansion as a singular directional bet across the entire XRP market.

Option market volatility indicators can vary based on maturity, strike price, trading volume, and open interest. The analysis emphasizes that relying solely on a single exchange's XRP-USDT options data may not fully represent overall market positioning. Similar to Bitcoin's 30-day implied volatility, CryptoBriefing previously noted that XRP's implied volatility changes should be interpreted separately from spot price direction.