XRP Price Forecast: Bullish Upswing with Key Technical Levels to Watch
XRP/USD Shows Promising Recovery as Open Interest Surges
Ripple (XRP) has shown a noticeable bullish shift, with a significant recovery over the past two weeks. As of May 16, 2025, XRP is trading at $2.40, reflecting a 2% dip in the last 24 hours but an impressive 13% gain over the past two weeks. This price action is accompanied by a remarkable 53% surge in open interest (OI), which indicates a strong bullish sentiment in the market.
The surge in XRP open interest from $3.61 billion to $5.53 billion between May 8 and May 14 suggests a growing investor confidence. The current open interest at $5.06 billion on May 16 further reinforces this sentiment, signaling that more traders are committing to long positions, anticipating a continued rise. Historically, XRP’s price has followed such increases in open interest, with a notable 70% rally from $1.99 to a seven-year high of $3.40 in January 2025. This kind of movement suggests that XRP might be on the cusp of another significant price surge.
V-Shaped Recovery Targets $3.40
Analyzing XRP's price movement, the digital asset is following a V-shaped recovery pattern on its weekly chart. This bullish pattern occurs when a sharp price increase follows a steep price decline, and it’s completed when the price reaches the resistance at the top of the V-formation, which, for XRP, is the $3.40 neckline.
For XRP to continue its upward trajectory, bulls must reclaim the $2.60 level as support, which would set the stage for a rise to $3.00. A breakout above $3.00 would then point to the $3.40 resistance, which would represent an approximate 40% increase from the current price of $2.40.
The Relative Strength Index (RSI) has been improving, moving from 43 to 56 in the past six weeks, showing that XRP is gaining bullish momentum. This RSI increase further confirms the potential for further price gains as the upward pressure builds.
Expert Predictions for XRP Price
Experts are optimistic about XRP's potential, with analysts pointing to key levels that could indicate a strong continuation of the bullish trend. Crypto analyst Egrag Crypto pointed out that a breakout from the descending triangle formation on the daily chart could lead XRP back to the $3.40 zone, revisiting its January peak. Dom, another market analyst, highlighted the importance of $2.40 as a key support level, which sits above all of XRP’s volume-weighted average prices (VWAP) and major moving averages, suggesting that maintaining support at this level is crucial for sustaining the upward momentum.
Dom emphasized, “XRP saw a clear break of the VWAP bands earlier this week and pushed right to the value area high (VAH), where the price stalled. For the immediate structure to stay intact, we want to see bulls defend these levels.”
XRP’s Technical Outlook and Market Sentiment
XRP is poised at a pivotal point in its market cycle. As open interest continues to rise, XRP price could be positioned for further gains, especially with the positive price action forming a V-shaped recovery on the weekly chart. The key resistance remains at $3.40, while support at $2.40 and the area around $2.20–$2.30 will be critical in sustaining the bullish momentum.
The increase in open interest suggests growing confidence from traders who are betting on XRP's continued growth. Moreover, XRP’s ability to maintain its price above these crucial support levels could pave the way for further price appreciation, with $3.40 being the next major target. However, a failure to hold the $2.40 support could trigger a deeper pullback, potentially back to the $2.20–$2.30 range.
What Does the Future Hold for XRP?
Despite some concerns about market volatility and short-term fluctuations, the underlying bullish momentum remains strong. XRP’s ability to surge alongside increasing open interest and maintain its bullish chart pattern suggests that the cryptocurrency could be in the early stages of a significant rally.
With XRP consistently outperforming broader market trends and holding above key technical levels, traders and investors are optimistic about its future. Key support at $2.40, combined with the ongoing V-shaped recovery pattern, sets XRP up for a potential breakout, especially if it can hold above these crucial levels in the coming weeks.
Conclusion: A Buy Opportunity?
Given the positive technical indicators and market sentiment, XRP presents a bullish outlook. With the price showing clear signs of recovery and open interest surging alongside the price action, there is strong potential for further gains. Traders should monitor the $2.40 support level and the resistance at $3.40 for potential breakout opportunities.
As XRP continues its recovery from recent lows, maintaining bullish momentum, this is a cryptocurrency worth keeping an eye on, especially for those looking for a solid market rebound.
If XRP successfully breaks through the $3.40 resistance, a significant rally towards new highs could be on the horizon.
