Analysts note that XRP is forming a bullish Cup & Handle pattern, potentially indicating significant upside. This article explores key aspects of this analysis.
Technical Analysis of Cup & Handle
The Cup & Handle pattern is one of the most reliable indicators in market analysis. It consists of a rounded bottom (‘cup’) followed by a brief consolidation or pullback (‘handle’). Typically, when this pattern completes, it leads to a sharp price breakout. According to XRPunkie's chart, the cup structure began forming around July 17, with the price bottoming near $3.32 before gradually rising back toward $3.66. A slight dip formed the handle, suggesting the final stage before a potential breakout. The visual projection on the chart points to a price target of $4.00, indicating a substantial short-term rally.
Current Price and Market Outlook
As per the latest data from Bitstamp, XRP is trading at $3.56360, reflecting a modest daily increase of 0.35%. The immediate resistance level sits at $3.66676, corresponding with the top of the cup formation. A confirmed breakout above this level would likely trigger a sharp move toward the projected $4.00 mark. The market structure looks supportive of this bullish outlook as XRP remains above its 21-period Exponential Moving Average (EMA) on the 1-hour chart, reinforcing the positive momentum.
Key Levels and What to Watch Next
While $3.66 remains the critical resistance to break, a decisive move above that level would validate the Cup & Handle pattern and open the path to $4.00. If XRP fails to break out, however, it could retest lower support zones around $3.40–$3.50 before making another attempt. In summary, XRP is shaping up for a potentially explosive move, with technical and macro signals aligning. Should the breakout materialize, $4.00 could be reached in the very near term.
In conclusion, XRP is exhibiting promising signals and may be on track for significant growth if it breaks through key resistance levels.
