Ripple (XRP) is seeing a modest resurgence after weeks of a downtrend. Over the past seven days, the crypto asset has steadily gained more than 5% to climb to just over $3.

However, the surge in XRP call options, as traders bet on ETF approvals, could potentially push the price targets to $4-$5 by year-end.

XRP ETF Optimism

There is a clear divergence in sentiment across the crypto market, which the analytics team at B2BinPay attributed to how traders are rotating capital into altcoins with near-term catalysts. In a statement to CryptoPotato, they noted that options data reflects growing optimism toward XRP while Bitcoin (BTC) and Ethereum (ETH) face increased caution.

Specifically, December call options on XRP are trading well above puts, which the team interprets as a sign of market confidence fueled by expectations of potential US ETF approvals later this year. According to their view, if even one product receives approval, the resulting inflows could propel XRP into the $4-$5 range by year-end.

On the other hand, Bitcoin and Ethereum show option markets skewed toward protective strategies, as evidenced by puts priced higher than calls. This defensive stance aligns with slowing ETF flows. For instance, Ethereum ETFs witnessed record-high outflows last week alongside recession concerns and profit-taking after BTCs rally stalled above $100,000 and ETH retreated from $5,000 to $4,300.

For B2BinPay, this trend signals a rotation. They explained that the traders hedge majors while pursuing upside in select altcoins.

Meanwhile, Polymarkets latest data suggests theres a 93% chance that an XRP ETF will be approved by the end of 2025.

Experts Signal Big Move

Supporting this outlook, analyst Crypto Tony observed that XRP crossing the $2.95 level is already a bullish trigger and opened the door for a long position.

A similar sentiment was echoed by another prominent market expert, Ali Martinez, who further added that a breakout above the descending triangle pattern could send XRP to $3.60, which further validated the case that optimism around ETF approvals may only amplify XRPs momentum.

XRPs recent price momentum coincided with a new expansion in Spain. This week, Ripple announced partnering with BBVA to integrate its self-custody solution, Ripple Custody, into the Spanish banks recently launched crypto trading and custody services. This integration allows BBVA to securely manage tokenized assets, including BTC and ETH, while ensuring regulatory compliance.