Ripple (XRP) has formed a bull flag on the daily chart – a technical chart pattern that often signals a breakout momentum. Does this bullish setup and the soaring open interest (OI)* indicate the start of XRP's second rally into double digits?
Increasing OI drives XRP price
XRP's price rose 15% in the past seven days after several weeks of consolidation since this altcoin's price surge to $3 in early December. The price increased by 1.5% to a daily high of $2.44 on January 6, according to data from TradingView.
Meanwhile, the significant increase in OI over the past 24 hours further enhances XRP's potential for a high rise.
The chart below shows that XRP OI increased by 45% over the past 24 hours from $2.6 billion to $3.7 billion, indicating that investors are opening positions with the expectation of price increases. This also suggests that there is more trading activity and money flowing into the XRP market.
XRP OI | Source: CoinGlass
Traditionally, significant increases in OI often occur before strong price surges in XRP.
For example, this index surged over 100% during the period from July 13 to July 14, 2023, triggering a price increase of 107% during the same period.
This price action follows Judge Analisa Torres' ruling that XRP is not a security in the lawsuit by the U.S. Securities and Exchange Commission against Ripple.
The same occurred when OI rose 76% during the period from November 29 to December 3, 2024, resulting in a price increase of 100% during the same period.
If history repeats itself, the latest increase in OI could drive the price of XRP to break out of the consolidation pattern, recording significant gains of up to $15.
XRP Bull Flag Aiming for $15
Ripple's native coin is expected to continue its prevailing bullish momentum despite a pullback from recent highs, as the chart shows a classic technical pattern forming.
XRP's price action from November 5, 2024, to January 6, 2025, formed a bull flag pattern on the daily chart, as shown in the figure below. A daily candle closing above the upper boundary of the flag at $2.41 would signal the start of a strong bullish breakout.
The target is set according to the height of the flagpole, reaching around $15, which is over 520% above the current price.
XRP Daily Price Chart and Bull Flag Pattern | Source: TradingView
Other bullish indicators observable on the chart are the immediate support level provided by the 50-day simple moving average at $2.10 and the relative strength index resetting just above the 50 mark.
Some analysts also predict an XRP price target of $15 by 2025, citing market sentiment towards XRP adoption and partnership growth, thanks to a crypto-friendly Trump administration.
Using Fibonacci levels and Elliott wave theory, renowned analyst Egrag Crypto shared an optimistic prediction, stating that XRP could reach $15 by May 5, 2025.
XRP RSI Analysis | Source: Egrag Crypto
*OI (open interest) is a measure of the total value of all outstanding or 'unsettled' futures contracts on exchanges, and simultaneously an indicator of market bullishness as well as trader sentiment around a specific asset.
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