XRP, the native token of Ripple Labs, is showing strong bullish momentum after breaking out of a multi-month “pennant” pattern on the weekly chart. This breakout, combined with a 30% surge in futures open interest, has analysts targeting a rally toward $3.20 in the near term.
XRP Price Breaks Pennant, Targets 40% Upside
Since December 2024, XRP had been consolidating within a pennant formation—a technical pattern signaling a potential breakout. On July 3, 2025, XRP broke above the upper trendline of this pennant near $2.21, suggesting a shift toward renewed upward momentum.
The technical target for the breakout stands at $3.20, a 40% gain from the breakout point, based on the pennant’s widest range.
This pattern indicates growing confidence from both retail and institutional investors that XRP is set to outperform as it exits a prolonged consolidation phase.
Futures Open Interest Jumps 30% as Traders Return
One of the most bullish signs in recent days has been the dramatic rise in XRP futures open interest (OI):
- 30% increase in the past 10 days, now totaling $4.75 billion
- 11% jump in the last 24 hours alone
Rising open interest alongside rising prices often signals institutional participation and strong trader conviction.
This growing demand in the derivatives market echoes a similar trend observed earlier in the year, when XRP surged 65% amid a 91% OI increase.
Positive Fundamentals Add Fuel to the Rally
XRP’s breakout is supported by several key developments:
- Ripple’s application for a U.S. banking license
- SEC’s approval of Grayscale’s GDLC spot ETF conversion
- New strategic partnership with OpenPayd
- Elevated expectations for a potential XRP spot ETF
These catalysts have strengthened investor sentiment and contributed to the token’s 7.2% intraday gain to $2.31 on July 3.
Bullish Sentiment Dominates Despite Liquidation Risks
XRP’s long/short ratio is currently tilted toward bullish positions, with 68% of traders holding long contracts. While this imbalance introduces short-term liquidation risk, it also highlights strong market confidence in continued upward movement.
Conclusion: XRP Positioned for Breakout to $3.20 and Beyond
With a successful technical breakout, rising futures interest, and strong macro-fundamentals, XRP appears well-positioned for a potential rally to $3.20 in the coming weeks.
If bullish momentum holds, some analysts believe XRP could even test the $3.40 level — last seen in its historic run-up in 2018.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.