Important points:
XRP was trading at $2.82 on Thursday and is expected to rise 120% to $6.20 due to a potential cup-and-handle breakout.
The XRP/USD pair needs to convert support from $3 to $3.10 as $2.80 remains a key interest level for traders.
XRP (XRP) price has declined over the past seven days, hitting a low of $2.81 on Thursday. This resulted in a 23% drawdown from a multi-year high of approximately $3.66 to current levels of $2.82.
Despite the pullback, a strong technical setup on higher time frames and online data suggests that XRP’s upside remains intact.
XRP has the “most bullish pattern”: analyst
Analyst Mickey Bull Crypto shared a chart predicting a massive breakout in XRP price.
MickeyBull Crypto identified XRP price trading within a cup-and-handle chart pattern at $2.81, as shown on the 3-day chart below, which it described as “the most bullish pattern.”
Related: How XRP’s legal victory turned it into Wall Street’s favorite cryptocurrency
This chart suggests that analysts are expecting further upside for the altcoin, and the measurement target for this pattern is set at $6.20, or a 120% rise from current levels.
“The breakout is going to be intense.”
Other analysts remain optimistic about XRP’s potential for further gains, citing strong whale accumulation and optimism about the possibility of XRP ETF approval.
Dom, an independent trader, said $3.12 is the most important level in the short term to “trigger a rally.”
According to the trader, on the 8-hour chart, the price is settling at the monthly reference point (around $3, the most traded price level in the past 30 days).
This is a good thing because it “often happens before it loses value,” but it’s important to turn it into support, Dom wrote, adding:
“A reversal of the $3.08 to $3.12 area would trigger a rally.”
The same level coincides with the top border of the cup handle shown in the previous graph.
However, despite the positive macro outlook, XRP’s daily relative strength index has declined from 57 to 42 over the past seven days, suggesting that the bullish momentum is cooling down.
Therefore, there is a possibility of a correction towards the lower end of the handle at $2.55, which should be a good entry point for late longs.
Liquidation remains above $2.90
According to CoinGlass, several traders are keeping an eye on the potential for increased liquidity, especially on ask orders above $2.90 and $3.
A breakout of the psychological $3 level could trigger a short squeeze, forcing short sellers to close their positions and sending XRP closer to $3.20.
UTXO Realized Price Distribution (URPD) is showing strong price support around $2.80, with approximately 2.5 billion XRP acquired.
This base should act as a solid support zone to absorb selling pressure and prevent further correction.
As reported by Cointelegraph, sustaining levels above $2.80 is critical for a sustained recovery towards $3 and ultimately a new all-time high.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk and readers should conduct their own research when making decisions.
