Notable crypto analyst Dark Defender (@DefendDark) has drawn attention to a cup and handle pattern forming on the XRP daily chart. This pattern has been forming for months, and the analyst has set short-term targets that could reach as high as $1.88.
A cup and handle pattern is a technical analysis formation in financial charts, indicating a bullish trend reversal. It consists of a rounded bottom (cup) followed by a consolidation period (handle). The pattern suggests potential upward price movement, with a breakout typically occurring at the handle’s resistance level.
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The price surge following Judge Torres’s July ruling in the U.S. Securities and Exchange Commission’s (SEC) lawsuit against Ripple began the cup formation. This ruling was a major win for Ripple and the XRP community, as non-institutional sales of XRP were declared non-security offerings.
Subsequently, XRP experienced a correction, dropping to a low of $0.4580 in September. However, the bulls remained resilient, defending this support level, and XRP surged in early November, completing the second section of the cup.
The handle of the cup has been forming since November, and Dark Defender acknowledges the possibility of a breakdown below the current support of $0.6044, potentially extending to the next support at $0.5286.
However, he emphasizes that this would not be an ideal outcome for XRP’s trajectory. Instead, the asset needs to record two more intraday closes above the $0.6044 support to maintain its upward momentum.
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Despite this minor concern, Dark Defender remains confident in XRP’s bullish prospects. He maintains his short-term price targets of $1.05 and $1.88, which could be achieved if XRP surpasses resistance levels at $0.6649, $0.7312, and $0.7721.
At the time of press, XRP is trading at $0.6132, with a 2.94% increase in 24 hours. XRP will need to add 206% to reach the target of $1.88. The cup and handle pattern, along with Dark Defender’s analysis, paints a favorable outlook for XRP in the short term.
Investors should closely monitor XRP’s price action and await confirmation of a breakout above the $0.6044 support level to validate the potential rally.
Although some community members doubt Dark Defender’s analysis, he was met with many favorable responses, with XRP enthusiasts looking forward to this move to $1.88. However, $1.88 may not be the end, as Dark Defender had once predicted a move to $5.85 for XRP.
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