Ripple’s native token XRP is making headlines once again as it breaks out of a multi-month bullish pennant pattern on the weekly chart, signaling a potential 40% rally to $3.20. This bullish move is backed by a surge in futures open interest (OI), increased institutional activity, and renewed optimism in regulatory and partnership developments surrounding Ripple.

Bull Pennant Breakout Sets $3.20 in Sight

A “pennant” is a classic technical chart pattern that often precedes a continuation of an existing trend in this case, a bullish one. XRP’s price action between December 2024 and July 2025 formed a clear pennant pattern, with the breakout confirmed on July 3, when the price moved above the key resistance at $2.21.

The breakout is now targeting a potential move to $3.20, which is derived from the height of the pennant formation. This projection marks a 40% upside from XRP’s recent price of $2.31, which it reached after a 7.2% intraday jump on Thursday.

The bullish pattern aligns with broader market optimism and sets the stage for a significant XRP rally in the coming weeks.

Futures Open Interest Surges 30% in 10 Days

One of the strongest signs confirming XRP’s bullish breakout is the 30% increase in XRP futures open interest (OI) over the last 10 days, bringing the total to $4.75 billion. In just the past 24 hours, OI rose by 11%, highlighting a clear spike in market participation, particularly from institutional and derivative traders.

Historically, such surges in OI have preceded major price rallies. A similar event occurred in April–May 2024, when XRP’s OI jumped 91% during a period of macroeconomic relief announcements from the U.S. government, pushing XRP from $1.61 to $2.65.

The current OI increase suggests rising confidence among investors that XRP could reclaim levels last seen during the previous bull cycle.

Ripple Developments Fuel Optimism

XRP’s price action isn’t being driven by technicals alone. Several fundamental catalysts are adding fuel to the fire:

• Ripple’s application for a U.S. banking license has positioned the company for deeper integration into traditional finance.
• The SEC’s approval of Grayscale’s GDLC fund conversion into a spot ETF has improved investor sentiment across the altcoin market, including XRP.
• A new partnership with fintech platform OpenPayd has bolstered Ripple’s use case in cross-border payments.
• Analysts are betting on improved odds for a spot XRP ETF, which would further legitimise the asset among institutional players.

This combination of regulatory clarity and real-world utility is helping XRP gain momentum even as other altcoins remain range-bound.

Investor Sentiment Remains Bullish Despite Liquidation Risks

Another key metric highlighting market optimism is the long/short ratio, currently standing at 68% in favour of longs across all exchanges. This indicates a strong belief among traders that XRP’s price will continue to rise.

While a highly skewed long ratio introduces the risk of long liquidations during short-term corrections, it also demonstrates increased bullish conviction and accumulation, especially from whales and institutional players.

Some analysts, including the pseudonymous “Best Analysts,” have even predicted a short-term upside target of $3.40, citing strong technical structure and momentum.

The Bull is Back for XRP

With a confirmed breakout from a multi-month bull pennant, a sharp increase in futures interest, and strong backing from Ripple’s ongoing ecosystem developments, XRP appears poised for a significant rally towards $3.20 or even beyond.

While traders should remain aware of short-term volatility and liquidation risks, the broader trend and fundamentals suggest that XRP’s upside potential is gaining serious traction. As the crypto market eyes the next phase of growth, XRP could be one of the key altcoins leading the charge.