XRP price shows positive signs as a bullish V-shaped recovery pattern emerges targeting $3.40.

XRP (XRP) price shows positive signs as a bullish technical pattern emerges on its weekly chart, coinciding with increasing open interest.

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 signs as a bullish technical pattern emerges on its weekly chart, coinciding with increasing open interest.

What’s next for XRP price

XRP price dropped 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 (OI) surged.

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 Monday. Futures OI increasing alongside the price indicates bullish sentiment.

Chart: TradingViewPro, Bankless

However, despite the recovery, XRP price is still down 35% from its 2024 high of $3.40, reached on January 16.

The cryptocurrency is now trading at levels last seen before the US President Donald Trump inauguration rally, which saw XRP price surge 70% to reach $3.40.

The rapid price appreciation was fueled by a broad-based cryptocurrency rally that began in mid-December 2024, following a period of stagnation in crypto markets.

The cryptocurrency markets finally broke out of their 18-month consolidation phase in November 2024, setting the stage for a strong rally in the final quarter of the year.

Rising OI usually precedes major rallies

The technical outlook for XRP also appears promising, as the cryptocurrency is forming a V-shaped recovery pattern.

A V-shaped recovery is a bullish pattern that occurs when an asset rises sharply after a steep decline. It is completed when the price manages to break above the neckline of the V formation, which is also a resistance level.

After reaching a low of $1.76 in mid-January, XRP began a strong recovery, eventually completing the V-shaped pattern.

To complete the V-shaped pattern, XRP 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, or RSI, has increased from 43 to 56 over the last six weeks, suggesting 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 meanwhile said 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.

“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, adding: