XRP Price Prediction: Is $3.40 Still on the Horizon?

Key Takeaways:

• XRP price shows potential for a bullish V-shaped recovery towards $3.40.
• A significant increase in open interest suggests strong investor confidence.

Recent market activity indicates a positive outlook for XRP, with a notable technical pattern forming on its weekly chart. This coincides with a surge in open interest, suggesting bullish sentiment among investors.

Open Interest Fuels XRP’s Upward Trajectory

While XRP experienced a minor 2% dip in the last 24 hours, trading above $2.40 on May 16th, it has shown remarkable strength, gaining 13% over the past two weeks. This upward momentum is complemented by a substantial increase in open interest (OI).

Open interest jumped 53% from $3.61 billion to $5.53 billion between May 8th and 14th, before settling slightly lower at $5.06 billion on May 16th. This increase in OI, coupled with rising prices, strongly indicates bullish investor sentiment. Historically, similar surges in OI have preceded significant XRP price rallies.

The current situation mirrors the price surge before US President Donald Trump’s inauguration in January, which resulted in a 70% rally, reaching a seven-year high of $3.40 on January 16th from a low of $1.99 on December 31st, 2024.

Related: Is the XRP Price Rally Over?

Although XRP funding rates have turned positive, they remain relatively neutral around 0.0065%, reflecting a balanced market sentiment despite growing speculation.

V-Shaped Recovery Pattern Emerges

Since mid-January, XRP’s price action has formed a compelling V-shaped recovery pattern on the weekly chart. This bullish pattern, characterized by a sharp price increase following a steep decline, is near completion.

For XRP to continue this trajectory, bulls must push past $2.60 to ensure support. Further advances would see XRP reach $3.00, and potentially the $3.40 neckline to complete the V-shaped pattern – a 40% gain from current levels.

The RSI has climbed from 43 to 56 in the past six weeks, reinforcing the growing bullish momentum. Multiple analysts echo this optimistic outlook, contingent on holding key support levels.

Analyst Egrag Crypto predicts a retest of the $3.40 zone following a breakout from a descending triangle. Meanwhile, analyst Dom highlights the importance of holding the $2.40 support level above all VWAPs and major moving averages for continued bullish activity.

Disclaimer: This article does not provide financial advice. All investment decisions involve risk, and readers should conduct thorough research before investing.