XRP News Today: XRP's Open Interest Surges 53% Driving 13% Gain

XRP is currently on a promising trajectory, with recent market movements indicating a bullish trend. This optimism is driven by a significant rise in open interest, which reflects heightened investor confidence and a positive sentiment for the cryptocurrency. Experts have noted that the increasing open interest suggests a shift in market dynamics, favoring XRP.

As of May 16, XRP’s price has settled at approximately $2.40, showing a slight decline of 2% over the past day. However, over the last two weeks, the cryptocurrency has experienced a robust gain of 13%, largely fueled by positive trends in the broader cryptocurrency market and a notable spike in open interest. The recent surge in open interest, which climbed 53% from $3.61 billion to a peak of $5.53 billion, indicates an influx of new capital and bullish speculations among traders. Although open interest witnessed a slight decrease to $5.06 billion on May 16, the overall increase hints at a strengthened market outlook for XRP.

Historically, significant increases in open interest often precede major price rallies. For instance, a similar pattern was observed during the run-up to notable market events, including a remarkable 70% rally experienced by XRP from late December 2024 to mid-January 2025. Additionally, while funding rates for XRP have turned positive, currently hovering around 0.0065%, this indicates a balanced market sentiment amid ongoing speculation.

The current trading patterns indicate a developing V-shaped recovery on XRP’s weekly chart, signaling potential bullish momentum. A V-shaped recovery is typically characterized by a dramatic rise in price following a steep decline, culminating at the apex of the “V,” also known as the neckline. For XRP, the critical milestone is to convert the resistance at $2.60 into support, which would pave the way for a jump toward $3.00 and eventually target the neckline at $3.40, marking a potential price increase of around 40% from its current standing. Data from the relative strength index (RSI) supports this bullish outlook, as it has ascended from 43 to 56 over the past six weeks, suggesting that market momentum is indeed building.

Several analysts share an optimistic sentiment regarding XRP’s trajectory, with one notable crypto analyst expressing confidence that breaking out of a descending triangle could lead XRP back to the $3.40 level. Prominent market analyst noted that sustaining the price above $2.40 is essential for the continuation of bullish momentum. This level is crucial as it aligns with significant volume-weighted average prices (VWAPs) and key moving averages. The analyst noted, “XRP managed to break through key VWAP bands recently, effectively reaching the value area high where the price stabilized,” indicating that protective measures by bullish traders will be vital in maintaining upward momentum.

With increasing open interest and favorable technical indicators, XRP’s path forward appears promising. As traders observe how key support levels hold and react to market conditions, interest remains high regarding the future of XRP and its potential to reach and exceed recent highs at $3.40. In summary, the current market landscape reveals a highly strategic position for XRP, driven by a substantial increase in open interest and a bullish V-shaped recovery pattern. If XRP can retain critical support levels, the potential for a breakout beyond its previous highs may indeed materialize, providing valuable insights into its future price trajectory.