XRP News Today: XRP's Bullish V-Shaped Recovery Targets $3.40 as Open Interest Surges 53%

XRP, the cryptocurrency, is currently exhibiting a bullish V-shaped recovery pattern on its weekly chart, with a target price of $3.40. This pattern is supported by a significant increase in open interest (OI), which surged by 53% from $3.61 billion to $5.53 billion between May 8 and May 14, before slightly dropping to $5.06 billion on May 16. The increase in OI, alongside the price, indicates a bullish sentiment in the market.

Historically, significant increases in OI have preceded major rallies in XRP price. For instance, a similar scenario in the run-up to the US President Donald Trump’s inauguration in January led to a 70% rally from a low of $1.99 on Dec. 31, 2024, to a seven-year high of $3.40 on Jan. 16. This historical data suggests that the current increase in OI could potentially lead to a similar rally in XRP price.

XRP’s price action has been forming a V-shaped recovery pattern on the weekly candle chart since mid-January. 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. 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.

The relative strength index (RSI) has increased from 43 to 56 over the last six weeks, suggesting that the bullish momentum is picking up. Several analysts have also predicted further gains for XRP, as long as key support levels hold. Crypto analyst Egrag Crypto shared an optimistic price prediction for XRP, saying that the breakout from a descending triangle in the daily timeframe could see XRP price retest the $3.40 zone. Market analyst Dom emphasized 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. 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: “For immediate structure to stay intact, we want to see bulls defend these.”

While XRP funding rates have flipped positive, they remain relatively neutral, around 0.0065%, indicating balanced market sentiment despite growing speculation. This suggests that the market is not overly bullish or bearish, but rather waiting for further developments to make a move. The current price of XRP is above $2.40, and it has gained 13% over the past two weeks as the broader cryptocurrency market recovered. The bullish V-shaped recovery pattern, along with the increase in OI and the historical data, suggests that the price path to $3.40 remains intact. However, it is important to note that every investment and trading move involves risk, and readers should conduct their own research when making a decision.