Key Insights:
- XRP’s cup and handle pattern signals a potential breakout toward the $3.36 resistance.
- A breakout above $2.7 could trigger a 25% rally
- Analysts predict a possible surge to $6 if XRP sustains momentum after breaking resistance.
XRP price has formed a cup and handle pattern, signaling a potential breakout. The asset has consolidated between $2.4 and $2.7 after dropping from its $2.83 high on February 15.
Despite market fluctuations, XRP price has held key support. This suggests strong buying pressure. Analysts believe breaking $2.7 could trigger a rally toward $3.36.
XRP Price Forms a Cup and Handle Pattern
Analyst Thom Sieloff identified a cup and handle pattern on XRP’s daily chart. The pattern began when XRP price dropped from $3.21 on January 28, hitting a low of $2.26 on February 7. Following this decline the asset provided an opportunity for the buyers to regain control.
This is where the consolidation was formed. The range-bound phase persisted until February 12 when XRP price began to rise.
On February 15, the price had reached $ 2.83 completing the cup formation that usually occurs when buying pressure increases during the formation process.
Moreover, Thom emphasized that the handle pattern emerged in the previous few days, as the XRP price oscillated between $2.4 and $2.7.
Generally, this formation indicates a consolidation phase, which precedes a breakout. It states that XRP price must move above $2.7 in order to affirm a bull signal.
In this case, the price could go up often as positive sentiment increases. Investors are all keenly waiting for the signs.
XRP price Eyes $3.36 as Breakout Target
Notably, a cup and handle pattern often leads to strong upward momentum. Thom suggested that assets with this structure in the past have experienced significant upswings.
He even stated that a move above $2.7 could take the price of XRP to $3.36. This projection corresponds to other identical patterns, which led to certain price increases.
More so, AI chatbot Grok analyzed XRP price movement and predicted a possible 25.37% rally. The AI suggests XRP could reach $3.36 if it breaks out from $2.68.
This aligns with technical indicators pointing to further gains. However, external factors and market sentiment will play a role in sustaining momentum.
Additionally, analyst Polly provided an optimistic outlook. She suggests that if XRP price gains strong bullish momentum, it could push beyond $3.36 and possibly test $6. While this is a bold prediction, it reflects growing confidence among traders.
However, a confirmed breakout must occur before such a rally materializes. If buying pressure continues, XRP price could see increased volume, reinforcing the bullish case.
Technical Indicators Support a Bullish Trend
On the technical indicators, the Moving Average Convergence Divergence (MACD) indicator remains neutral but hints at a possible bullish crossover.
A MACD crossover would indicate strengthening momentum, confirming a move above resistance.
The Relative Strength Index (RSI) remains stable, suggesting room for further price growth. These indicators support the possibility of a bullish trend continuation.
Another key indicator, the Bull Bear Power (BBP), highlights stronger buying pressure. The BBP histogram bars above the zero line indicate a bullish market structure.
This suggests that investors are accumulating XRP price in anticipation of a breakout. If buying pressure remains strong, XRP price could break past resistance and sustain an upward trajectory. Analysts remain confident that XRP price structure favors further gains.
XRP Price Outlook: Can It Hit $6?
Breaking out from $2.7 resistance will serve as proof of bullish reversal. Breaking through $2.7 resistance could enable the potential to achieve greater targets in the coming months.
Analysts suggest that historical price action and technical patterns support a rally to previous highs.
At the time of writing, XRP price is $2.56, reflecting a 4.41% drop in the last 24 hours. However, if buying pressure increases, XRP could soon break out of its current range.
The cup and handle pattern suggests a strong chance of a bullish continuation. Traders should monitor the $2.7 level, as it will determine XRP’s next move.
