XRP Flashes Cup and Handle Pattern, Analyst Says A Breakout Could Send Price Above $3

Crypto analyst Ali Martinez (@ali_charts) recently shared an analysis on X showing a cup and handle pattern on the XRP chart.

This pattern is a bullish technical formation that could indicate a significant upward movement after a breakout. The analyst suggests that if XRP follows this pattern, it could set the stage for a rally toward $3.35.

Understanding the Cup and Handle Formation

The cup and handle pattern is a widely recognized bullish continuation pattern. It consists of a rounded bottom, forming the “cup,” followed by a slight pullback that creates the “handle.” This structure often signals the end of a consolidation phase and the beginning of a new upward trend.

In XRP’s case, the chart posted by Martinez shows the cryptocurrency forming this pattern, with price action rounding out the cup before a minor consolidation in the handle region.

Other experts have recently shared bullish predictions for XRP. This cup and handle formation has reinforced the bullish sentiment for the digital asset.

Key Price Levels and Market Context

At the time of the analysis, XRP was trading at approximately $2.77. According to o Martinez, a confirmed breakout above the resistance zone could propel the price toward $3.35. However, for the breakout to be validated, XRP must maintain support above the lower trendline of the cup handle.

The breakout could face challenges if selling pressure increases or broader market conditions turn bearish. At press time, the asset traded at $2.74, after a brief rally to $2.8, attempting to break above the cup handle.

Broader Market Influence On XRP Price Movement

While technical analysis provides a framework for price projections, external factors such as market sentiment, regulatory developments, and overall crypto market conditions will influence XRP’s trajectory.

The XRP’s recent bullish performance came after a shift in the stance of the U.S. Securities and Exchange Commission (SEC) regarding cryptocurrency ETFs. The regulator recently acknowledged multiple XRP ETFs.

While the applications have not been approved, this signals the SEC’s willingness to engage with the crypto space, and some pundits believe this is an early sign that the regulator will drop its lawsuit against Ripple.

XRP’s technical setup presents a compelling case for potential upside, and with other bullish factors surrounding the asset, we could see a major breakout to $3.35 soon.

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