XRP price demonstrates positive signs as a bullish V-shaped pattern forms on the weekly chart, coinciding with increasing open interest.
Increasing Open Interest Supports XRP Upside
XRP price is down 2% over the last 24 hours, trading above $2.40 on May 16, but has gained 13% over the past two weeks. XRP's open interest (OI) surged 53%, rising from $3.61 billion to $5.53 billion between May 8 and May 14, before slightly dropping to $5.06 billion on May 16. The increasing open interest alongside the price indicates bullish sentiment.
XRP Chart: V-Shaped Recovery
XRP's price action has been forming a V-shaped recovery pattern since mid-January. A V-shaped recovery is a bullish pattern occurring when an asset sharply rebounds after a steep decline. The pattern will be completed when the price rises to the resistance level at $3.40, signifying a potential 40% increase from current levels.
Analyst Predictions and Key Support Levels
Several analysts have predicted further gains for XRP provided that key support levels are maintained. Crypto analyst Egrag Crypto mentioned that a breakout from a descending triangle could lead XRP to retest the $3.40 zone. Market analyst Dom emphasized that XRP must hold $2.40 to sustain the bullish trend.
The bullish signals and increased interest in XRP create a positive outlook for further growth, but it remains essential to monitor support levels and market sentiment.
