Market observers have turned their attention to XRP as a bullish formation takes shape on the daily chart. Thom Sieloff recently identified a cup and handle pattern in XRP’s price action, fueling speculation about an impending breakout.
Price Consolidation Reflects Market Uncertainty
XRP has been navigating a consolidation phase between $2.4 and $2.7, struggling to regain upward momentum after its descent from the $2.83 peak reached on February 15. This period of price stabilization follows a broader market downturn that began when XRP retreated from the $3 level in early February.
Examining XRP’s movements over the past few weeks, Sieloff noted a structured price behavior indicative of a technical formation. The cryptocurrency’s descent from its January 28 high of $3.21 led to a bottom at $2.26 on February 7, setting the stage for a potential trend reversal.
Formation of a Cup and Handle Pattern
The sequential drop, subsequent stabilization, and gradual recovery led to the emergence of a cup-shaped structure, which is often recognized as a precursor to a bullish cup and handle pattern. This rebound saw XRP reclaim $2.83 on February 15 before encountering resistance.
In the days that followed, a slight pullback to the $2.4–$2.7 range shaped the handle portion of the formation. The handle often represents a brief consolidation before the price makes a decisive move. With this setup now in place, XRP traders are watching closely for confirmation of a breakout above resistance.
Can XRP Reclaim $3.36?
Historically, a breakout from the cup and handle pattern is a bullish continuation signal, typically leading to a strong rally. Analysts predict that if XRP breaks above the $2.7 resistance level, it could spark a significant price rally.
To gauge the potential target, Sieloff referenced xAI’s chatbot Grok, which analyzed past trends and suggested that assets forming this pattern often experience gains between 20% and 30% from the breakout level. Based on this projection, a 25.37% rally from the expected breakout at $2.68 could propel XRP to approximately $3.36.
We are on twitter, follow us to connect with us :- @TimesTabloid1
— TimesTabloid (@TimesTabloid1) July 15, 2023
The last time XRP reached this price point was on January 20, it struggled to break through due to intense selling pressure. If the pattern unfolds as expected, a decisive break above $3.36 could propel XRP into a prolonged upward trend.
Market Sentiment and the Road Ahead
Despite a 4.41% dip on February 21, bringing its price to $2.56, XRP remains within the consolidation phase of the handle. A recovery attempt could set the stage for a challenge of the $2.68 resistance zone, determining whether the anticipated breakout will materialize.
Market analyst Polly has expressed confidence in XRP’s potential for a larger rally, predicting a surge to $6 once the breakout occurs. While the market remains volatile, traders and investors will watch XRP’s price action, awaiting confirmation of a move that could redefine its short-term trajectory.
The emerging cup and handle pattern in XRP’s chart suggests a possible shift toward bullish momentum as the cryptocurrency market continues to evolve. The coming days will be critical in confirming whether this pattern translates into a notable price increase or requires additional consolidation.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
Follow us on Twitter, Facebook, Telegram, and Google News
