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Key takeaways:<\/strong><\/p>\n XRP price is forming a bullish V-shaped recovery pattern targeting $3.40.<\/p>\n<\/li>\n A 53% surge in open interest to $5.06 billion signals bullish sentiment.<\/p>\n<\/li>\n<\/ul>\n XRP (XRP<\/a>) price shows positive signs as a bullish technical pattern emerges on its weekly chart, coinciding with increasing open interest.<\/p>\n XRP price is down 2% over the last 24 hours to trade above $2.40 on May 16, but has gained 13% over the past two weeks as the broader cryptocurrency market recovered and XRP open interest<\/a> (OI) surged.<\/p>\n The OI surged 53% from $3.61 billion to $5.53 billion between May 8 and May 14, before dropping slightly to $5.06 billion on May 16. Futures OI increasing alongside the price indicates bullish sentiment.<\/p>\n Historically, significant increases in OI have preceded major rallies in XRP price. For example, the current scenario mirrors the XRP price pump in the run-up to US President Donald Trump’s inauguration<\/a> in January, leading to a 70% rally from a low of $1.99 on Dec. 31, 2024, to a seven-year high of $3.40<\/a> on Jan. 16.<\/p>\n Related: <\/strong><\/em>Is the XRP price rally over for now?<\/strong><\/em><\/a><\/p>\n While XRP funding rates have flipped positive, they remain relatively neutral, around 0.0065%, indicating balanced market sentiment despite growing speculation.<\/p>\n XRP’s price action has been forming a V-shaped recovery pattern on the weekly candle chart since mid-January, as shown below.<\/p>\n A V-shaped recovery is a bullish pattern formed when an asset experiences a sharp price increase after a steep decline. It is completed when the price moves up to the resistance at the top of the V formation, also known as the neckline.<\/p>\n XRP appears to be on such a trajectory, and bulls need to flip $2.60 back into support in order to increase the chances of the price rising to $3.00. Higher than that, the next logical move would be the neckline at $3.40 to complete the V-shaped pattern. This would represent a 40% increase from the current price.<\/p>\n The relative strength index, or RSI<\/a>, has increased from 43 to 56 over the last six weeks, suggesting the bullish momentum is picking up.<\/p>\n Several analysts have also predicted further gains for XRP, as long as key support levels hold.<\/p>\n Crypto analyst Egrag Crypto shared an optimistic price prediction for XRP, saying<\/a> that the breakout from a descending triangle in the daily timeframe could see XRP price retest the $3.40 zone.<\/p>\n Market analyst Dom emphasized<\/a> that XRP must hold $2.40, which sits above all its volume-weighted average prices (VWAPs) and all the major moving averages, to sustain a bullish continuation.<\/p>\n XRP “saw a clear break of the VWAP bands earlier this week and pushed right to the value area high (VAH) where the price stalled,” the analyst said in his latest X analysis on X, adding:<\/p>\n “For immediate structure to stay intact, we want to see bulls defend these.”<\/p><\/blockquote>\n This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.<\/p>\n","protected":false},"excerpt":{"rendered":" Key takeaways: XRP price is forming a bullish V-shaped recovery pattern targeting $3.40. A 53% surge in open interest to $5.06 billion signals bullish sentiment. XRP (XRP) price shows positive<\/p>\n\n
Increasing OI backs XRP upside<\/h2>\n
XRP price chart paints V-shaped recovery<\/h2>\n