XRP Price Shows Bullish Signs with a V-Shaped Recovery Aiming at $3.40

The cryptocurrency market has recently seen signs of strong bullish sentiment for XRP. The price of XRP, one of the dominant cryptocurrencies, is forming a bullish V-shaped recovery pattern that targets a remarkable surge to $3.40. The open interest, an essential indicator of market demand, surged by 53% to hit the $5.06 billion mark, signaling optimistic market sentiment. This unfolding bullish pattern evolves along with XRP’s rising price, further reinstating positive market outlook.

Price Indications and Market Behavior

As of May 16, the XRP price took a slight dip of 2% over the previous 24 hours, and was trading at somewhat over $2.40. However, the digital asset has experienced a notable gain of 13% over the last two weeks amid a broader cryptocurrency market recovery. This positive upswing corresponds to a surge in XRP’s open interest, which rose 53% within six days, from $3.61 billion to $5.53 billion between May 8 and May 14. This figure witnessed a minor fall on May 16, sliding down to categorize at $5.06 billion. The parallels between increasing open interest along with the price rise suggest a bullish sentiment. Historically, these substantial increases in open interest have served as precedents to significant rallies in XRP’s price.

Historical Outlook and Prediction

Investors can draw commonalities between the current scenario and the digital currency’s price surge, preceding U.S. President Donald Trump’s 2025 inauguration. This past event saw a 70% rally from a low of $1.99 on December 31, 2024, leading to a seven-year high of $3.40 on January 16. Despite speculations of a bullish market rising, XRP’s funding rates have rechanneled to the positive spectrum. However, their position remains relatively stable at approximately 0.0065%, indicating equilibrium in market sentiment.

Bullish Price Action: V-Shaped Recovery

The weekly candle chart of XRP indicates the formation of a V-shaped recovery pattern; a bullish pattern emerges when the asset price quickly increases post a steep decline. This pattern comes into culmination when the price moves up to meet the resistance at the V formation’s top, known as the neckline. If XRP’s trajectory maintains its bullish position, the digital coin will need to flip the $2.60 mark back into its support. It would establish better chances of a price rise to $3.00. Further upward, the next logical move would meet at the neckline priced at $3.40 to complete the V-shaped pattern, a 40% increase from XRP’s current price.

Momentum Booster: Relative Strength Index (RSI)

Over the past six weeks, the RSI for XRP has grown from 43 to 56. This increment demonstrates that the bullish momentum is gaining pace. Analysts are predicting further gains for XRP as long as it can hold its key support levels.

Analysts’ Predictions

According to crypto analyst Egrag Crypto, a breakout from a descending triangle within the daily timeframe could potentially lead to the XRP retesting the $3.40 area. Moreover, market analyst Dom has emphasized the importance of XRP maintaining the $2.40 value, which positions above all volume-weighted average prices (VWAPs) and major moving averages for a bullish continuation. The EOS crypto coin experienced a clear break of the VWAP bands earlier this week and moved directly to the value area high (VAH), where its price seemed to pause. Such XRP price movement pattern serves as a positive indicator for potential investors, making XRP a promising contender in the expansive digital currency portfolio. Remember, every investment and trading move comes with risks. These predictions should not be taken as investment advice or recommendations. Always conduct proper research and exercise caution when making any decision related to investments. Disclaimer: Market conditions can change rapidly, and the information presented in this article is accurate at the time of writing.