XRP Futures Surge 25% as Bull Flag Hints at $14 Rally

XRP futures are showing renewed strength as the cryptocurrency climbs alongside broader market gains, reigniting bullish indicators and optimism among investors. On May 22, XRP experienced a dramatic surge in open interest, highlighting growing enthusiasm for the token’s future price potential.

The primary focus among analysts and traders is the formation of a classic bull flag chart pattern, which, if confirmed, could set the stage for a major rally with an ambitious price target.

Open Interest and Price Move in Sync

XRP’s market behavior has intensified, moving in alignment with large-cap cryptocurrencies. After Bitcoin reached another all-time high above $111,000, XRP also gained momentum, rising by over 5.5% intraday to hit $2.45 on May 22. From a low of $2.33 on May 21, this surge represents a notable reversal within just one day.

At the same time, XRP’s open interest on futures spiked 25%, reaching $4.95 billion. This significant increase signals a renewed influx of capital and growing participation from derivatives traders. Historically, such sharp rises in open interest have often anticipated major rallies for XRP.

A similar pattern emerged in early March, when the cryptocurrency was included in a national-level strategy to develop a digital asset reserve. That announcement led to an explosive 46% jump in open interest and grew XRP’s market value by 36% in just one day. These past events offer a compelling backdrop to XRP’s current momentum.

Further strengthening the bullish case, XRP perpetual futures saw a shift in their funding rate from a modest 0.0033% to 0.0126% between May 21 and May 22. Three weeks earlier, the funding rate was slightly negative. This shift to a more positive rate reflects traders’ rising confidence in the asset’s short-term potential.

Chart Pattern Points Toward Stronger Upside

The spotlight now turns to XRP’s chart structure, where a prominent bull flag pattern is forming on the weekly timeframe. This pattern, visible since early November 2025, has the potential to become a launchpad for a powerful breakout.

A decisive weekly close above the upper trendline at $2.48 would be a technical confirmation, opening the path for a 500% price rally. If realized, such a move would target the bull flag’s projected level — $14.50.

Supporting this optimistic scenario, XRP is trading above both the 50-day and 200-day simple moving averages on the daily chart, which offer strong support between $2.20 and $2.30. Meanwhile, the Relative Strength Index (RSI) has cooled to hover slightly above 50, a level that typically indicates room for further gains without suggesting overbought conditions.

Market Analysts Remain Optimistic

Technical analysts are closely monitoring volume-weighted average prices (VWAPs) as benchmarks for support and resistance. Current price levels sit just above the monthly VWAP at $2.32 and the quarterly VWAP at $2.27. These figures are significant because they represent average buy-in points for larger positions.

One noted analyst pointed out that maintaining a price above these benchmarks is key to sustaining upward momentum. The next critical barrier is the all-time high VWAP at $2.47. Clearing this could act as a catalyst for a fresh rally, potentially activating the bull flag’s measured move.

“The trigger for a leg up will be clearing the ATH VWAP (green). Watching closely for bulls to make this happen shortly.”

Longer-term projections also support the possibility of XRP nearing double-digit valuations. Based on Fibonacci retracement models and the symmetrical triangle chart pattern, some forecasts suggest that XRP could advance toward the $17 range in 2025 if existing trends continue.

While technical indicators and market activity offer a bullish setup, traders are reminded that all investment decisions carry risk. Understanding market dynamics and carefully evaluating each opportunity remains essential in navigating the volatility of digital assets.

For now, XRP’s price structure, surge in open interest, and rising bullish sentiment paint a compelling picture for both short-term traders and long-term holders.

Related: Expert Advice: Sell XRP If You’re Confused

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