Ripple’s native token, XRP, has been on a tear, surging more than 20% in just seven days. With current trading levels hovering around $2.13, bullish momentum is rapidly building, and analysts are now pointing to a potential breakout toward $2.4 — a price target that could push XRP to its highest level in over a year. As market conditions align and investor sentiment heats up, many are asking whether this is the start of a much larger rally.

Over the past week, XRP has climbed from a local low of $1.60 to a high of $2.20, showing strong resilience and increasing demand from both spot and derivative traders. At press time, XRP was trading at $2.13, reflecting a 20.73% gain over the past seven days. This kind of growth is catching attention across the crypto community, and the data backing it up is equally compelling.

Trading volume for XRP has exploded, jumping 42.18% to reach $10.12 billion, while options volume has surged by an eye-popping 204%, hitting $3,490. In addition, Options Open Interest — a measure of outstanding contracts in the derivatives market — has climbed by 87.5% to $486,600. These indicators point to strong market participation and growing speculation that XRP could continue to climb.

Well-known crypto analyst Ali Martinez has added fuel to the fire with his prediction of a move toward $2.4. He points to the formation of an ascending triangle on XRP’s daily chart — a bullish continuation pattern that often leads to breakout rallies. According to Martinez, XRP is nearing a key resistance level at $2.22. If this barrier is broken with convincing volume, it could be the catalyst that propels XRP to new short-term highs around $2.40.

The broader market sentiment seems to support this outlook. Data from AMBCrypto shows XRP’s DEX (decentralized exchange) buy-sell ratio is currently at 1.5, indicating that for every sell order, there are 1.5 buy orders. This imbalance reflects a surge in buyer demand and adds further momentum to the bullish trend. Higher buy-side pressure typically leads to upward price movement, especially when matched with declining sell-side interest.

Adding to the bullish case is XRP’s Funding Rate, which has remained positive over the past five days. A positive Funding Rate signals that long traders — those betting on price increases — are paying a premium to maintain their positions. This shows confidence in future price appreciation and suggests new market participants are entering long positions, further increasing buying activity.

A key metric adding weight to this optimistic forecast is XRP’s declining Exchange Supply Ratio, which currently sits at 0.02743. This indicates fewer tokens are being transferred to exchanges for selling, reducing overall sell pressure. When investors choose to hold rather than sell, it typically reflects strong belief in continued price growth and contributes to price stability.

Altogether, these factors paint a favorable picture for XRP’s short-term outlook. If the current bullish sentiment continues and XRP breaks above the $2.22 resistance level, a push toward $2.4 — and even beyond to $2.5 — could be realistic. However, if buyers fail to hold this level, a pullback to the $1.90 region remains possible as a support test.

In summary, XRP’s recent rally is supported by technical indicators, rising volume, and positive market sentiment. With strong fundamentals and growing interest from both spot and derivative traders, the altcoin appears well-positioned for further gains. Whether this rally turns into a full breakout depends on XRP’s ability to overcome resistance at $2.22 and maintain its upward momentum.