XRP News Today: XRP Surges 16% in a Month, Open Interest Jumps 53%

XRP, the cryptocurrency associated with Ripple, has recently shown a remarkable V-shaped recovery, with its price surging towards a target of $3.40. This bullish momentum is supported by a significant increase in open interest, which has risen by 53% from $361 million to $553 million between May 8 and May 14. This surge in open interest indicates growing investor optimism and is often interpreted as a positive sign for the cryptocurrency's price trajectory. As of May 16, XRP was trading above $2.40, reflecting a 16% increase over the past month, aligning with the broader cryptocurrency market recovery.

The V-shaped recovery pattern observed in XRP's weekly candlestick chart is a bullish indicator, characterized by steep rebounds following sharp declines. This pattern suggests that XRP is on a path toward $3.00 and its neckline at $3.40. However, sustaining the $2.60 support level will be crucial for continuing this upward trajectory. If the neckline is breached, XRP could potentially jump by approximately 40% from its current levels. The Relative Strength Index (RSI) has also risen from 43 to 56 over the past six weeks, further signaling strengthening bullish momentum.

Cryptocurrency analysts have noted that XRP has already broken out of a descending triangle on the daily chart, suggesting a high likelihood of testing the $3.40 target once again. Maintaining the $2.40 level, which aligns with major moving averages and the volume-weighted average price (VWAP), is imperative for the upward trend to persist. Defending these support levels is essential for retaining the immediate bullish structure.

Historically, a sharp rise in open interest has often preceded XRP price rallies. For instance, in January 2024, prior to Donald Trump’s U.S. presidential inauguration, XRP surged 70%, climbing from $1.99 to $3.40. Currently, XRP's funding rate stands at 0.0065%, signaling neutral market sentiment, although a gradual bullish trend appears to be gaining strength.

As XRP continues its trajectory, the combination of bullish technical patterns, increasing open interest, and improving investor sentiment has positioned it as a key cryptocurrency to watch in the coming weeks. However, market participants should keep a close eye on critical support and resistance levels to gauge the sustainability of this bullish momentum.