XRP Price Forecast: Bullish Momentum Targets $3.40

XRP price is showing renewed strength as bullish patterns take shape, hinting at a potential climb toward the $3.40 level. Despite recent fluctuations, the cryptocurrency remains on a promising recovery path backed by strong technical and market indicators.

The cryptocurrency has gained notable ground in recent weeks, climbing over 13% within a two-week period leading up to May 16. Though trading slightly lower at above $2.40 within the past 24 hours, XRP is forming a healthy uptrend. This is further supported by the rapid increase in open interest (OI), a key metric used to assess traders’ activity in futures markets.

Rising Open Interest Signals Market Confidence

The open interest for XRP has grown significantly, surging 53% from $3.61 billion to $5.53 billion in just under a week—before slightly correcting to $5.06 billion by May 16. This upward trend in OI alongside a price increase suggests that more traders are betting on future gains, reinforcing a bullish outlook.

Historically, spikes in OI have often been precursors to substantial XRP rallies. For instance, a similar pattern occurred in January, shortly before the inauguration of a new U.S. president, when XRP jumped 70%, reaching $3.40 from a low of $1.99 recorded on December 31, 2024.

Meanwhile, XRP’s funding rates, though positive, sit at a neutral level of around 0.0065%. This indicates that while optimism is present, the market remains relatively balanced and avoids extreme positioning.

Technical Charts Reveal V-Shaped Price Recovery

XRP’s weekly candlestick chart shows the formation of a V-shaped recovery pattern—a bullish signal that typically follows a sharp dip and is completed when prices return to earlier highs. For XRP, reclaiming support at around $2.60 could pave the way for a further rise to $3.00. Ultimately, a move to $3.40 would complete the V-shape, representing a total increase of roughly 40% from current levels.

The relative strength index (RSI), a measure of market momentum, has moved from 43 to 56 over a six-week span. This increase suggests that buying pressure is returning. Should the RSI continue to rise, it would validate the ongoing uptrend and encourage investor confidence.

Several crypto analysts share this outlook. One analyst noted that XRP recently broke out from a descending triangle pattern, which often signals trend reversals. They believe this could fuel a retest of the $3.40 zone in the near term.

Another market watcher emphasized the importance of the $2.40 level as a critical support zone. This area is positioned above XRP’s volume-weighted average prices (VWAPs) and major moving indicators. Maintaining this level could be key to preserving the upward momentum.

Earlier in the week, XRP broke through significant VWAP bands, reaching the value area high (VAH), which has since posed stiff resistance. Analysts observe that the next step for bulls will be defending recent gains to keep the trend intact.

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

While shorter-term fluctuations remain part of the crypto landscape, XRP continues to build a compelling case for a continued push toward higher levels, with $3.40 solidly within reach—if market conditions stay favorable.