**XRP and SOL Show Bullish Momentum as Crypto Market Recovers from October 10 Crash**
The crypto market experienced a significant shake-up on October 10, with a crash that wiped out $20 billion in leveraged futures positions. While Bitcoin (BTC) and Ether (ETH) continue to trade under pressure amid cautious sentiment, two major altcoins, XRP and Solana (SOL), are showing signs of renewed strength. This contrast is particularly evident in the options market, where key indicators reveal a shift in trader positioning for the months ahead.
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### XRP and SOL Risk Reversals Signal Bullish Sentiment
A widely followed options metric—the 25-delta risk reversal—is flashing bullish signals for XRP and SOL across all major expiry dates on Deribit, one of the leading crypto options exchanges. This indicator measures the difference in premiums between call and put options, reflecting whether traders are leaning bullish or bearish.
Currently, XRP and SOL exhibit **positive risk reversals** for expiries on October 31, November 28, and December 26. A positive reading means traders are paying more for call options, which are purchased when expecting price increases. This trend represents a broad shift in sentiment following the sharp market declines on October 10.
During the crash, XRP plummeted from $2.80 to $1.77 but has since rebounded to $2.33. Similarly, Solana dropped from $220 to $188, where it remains under pressure but similarly hints at recovery through trading sentiment. Despite current prices remaining below recent highs, options traders are positioning for an uptick in both tokens.
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### BTC and ETH Options Reflect Ongoing Caution
In contrast, Bitcoin and Ether options data continue to show a **put bias**—traders are paying higher premiums for puts as protection against falling prices. This bearish sentiment persists through long-dated expiries, including as far out as September 2026 for Bitcoin and December 2025 for Ether.
Some later expiries for ETH indicate a slight shift toward bullishness, but overall, the cautious tone remains dominant. It is worth noting that this does not necessarily reflect outright bearishness; some traders may be employing strategies like call overwriting, where calls are sold to generate income while holding the underlying asset.
Given that Deribit handles over 80% of crypto options trading, its data provides a reliable snapshot of market sentiment. However, options markets for XRP and SOL tend to be more volatile due to smaller open interest and lower trading volumes compared to BTC and ETH, which could influence the accuracy of these signals.
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### Perpetual Futures Funding Rates Remain Neutral
Despite the bullish momentum signaled in XRP and SOL options, perpetual futures funding rates across the major tokens—BTC, ETH, XRP, and SOL—remain close to zero. Neutral funding rates imply that neither long nor short positions dominate the market.
Data from Velo confirms this lack of strong directional bias. Traders have adopted a more cautious stance following the October 10 crash, where aggressive leveraged positions were liquidated. Perpetual futures contracts, which have no expiration date and use funding payments to anchor prices to spot levels, reflect this subdued sentiment.
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### Altcoins Showing Early Recovery While Majors Lag
The divergence between the cautious positioning in BTC and ETH and the renewed bullishness in XRP and SOL highlights differing expectations among traders. While the broader crypto market is still recovering, these altcoins may be leading the way out of the downturn, at least in terms of options market positioning.
Positive risk reversals for XRP and SOL signal that traders are anticipating upward price movements in the near term, even as perpetual futures markets remain neutral. This nuanced outlook underscores how risk is being approached differently across various crypto assets in the aftermath of recent volatility.
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As the crypto market continues to navigate turbulent waters, keeping an eye on options sentiment and funding rates can provide valuable insights into emerging trends and trader expectations. XRP and Solana’s early signs of recovery may offer clues about where the momentum could shift in the coming months.
https://coincentral.com/xrp-and-sol-options-turn-bullish-as-btc-and-eth-sentiment-stalls/