XRP (XRP) price printed a bullish flag on the daily chart, a technical chart pattern associated with strong upward momentum. Could this bullish setup and surging open interest signal the start of a second leg of XRP rising into double-digit territory?
XRP price rises due to increased IO
The price of XRP has risen 15% over the past seven days, following several weeks of consolidation following the altcoin’s rise towards $3.00 in early December. The XRP/USD pair is up 1.5% from its intraday high of $2.44 on January 6, according to data from Cointelegraph Markets Pro and TradingView.
XRP’s upside potential is supported by the increase in open interest (OI), which has increased significantly over the past 24 hours.
The chart below shows that XRP OI has increased 45% in the last 24 hours, from $2.6 billion to $3.7 billion, suggesting that investors are opening positions in anticipation of a price increase in XRP. This also indicates that more trading activity and funds are entering the XRP market.
XRP open interest. source: Coin Glass
Historically, significant increases in OI interest have preceded rapid increases in the price of XRP.
For example, this indicator surged more than 100% between July 13 and July 14, 2023, triggering a 107% price surge over the same period.
This price action comes after Judge Analisa Torres ruled that XRP tokens are not securities in a Securities and Exchange Commission lawsuit against Ripple.
A similar price movement was witnessed when OI surged 76% from November 29 to December 3, 2024, and the price also surged another 100% during the same period.
If history repeats itself, the recent surge in OI could lead to consolidation in the price of XRP and a massive rally all the way to $15.
XRP price “bull flag” targets $15
The XRP/USD pair is expected to resume its dominant bullish momentum despite the pullback from recent highs, as the charts show a classic technical pattern in the making.
The XRP price movement between November 5, 2024 and January 6, 2025 resulted in the formation of a bull flag pattern on the daily chart, as shown below. A daily candlestick closing above the $2.41 flag cap would signal the start of a major bullish breakout.
The target is set based on the height of the flagpole and is around $15, an increase of around 520% from the current price.
XRP/USD daily chart featuring a bull flag pattern. Source: Cointelegraph/TradingView
Other bullish indicators visible on the chart include the 50-day simple moving average at $2.10 and the immediate support provided by the Relative Strength Index, which resets just above 50.
Several analysts have predicted an XRP price target of $15 by 2025, citing market sentiment for growth in XRP adoption and partnerships thanks to the cryptocurrency-friendly Trump administration.
Renowned cryptocurrency analyst Egrag Crypto shared an optimistic prediction that the XRP price could reach $15 by May 5, 2025, using Fibonacci levels and Elliott Wave theory.
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.