XRP has recently formed a cup and handle pattern on its daily chart, signaling potential bullish movement ahead.
Analyst Thom Sieloff highlighted the development in his latest analysis, noting that XRP has been consolidating between key levels following a significant drop from $2.83 on February 15.
After peaking above $3 in January, XRP saw a downturn that brought it to a low of $2.26 on February 7. This drop was followed by a period of consolidation where the selling pressure eased. As the price recovered to $2.83 on February 15, the pattern of a cup started to emerge.
This cup pattern was completed with a subsequent consolidation phase, forming the handle of the pattern, with the price fluctuating between $2.4 and $2.7.
The cup and handle structure is widely regarded as a bullish continuation pattern, where the handle represents a short period of consolidation before a potential breakout.
The crucial breakout point for XRP is expected to be at the resistance level of $2.7. Once XRP surpasses this level, a breakout could occur, pushing the price upwards.
According to projections from the AI chatbot Grok, assets typically see a 20 to 30% rally after breaking above the handle’s resistance. For XRP, this could mean a surge to $3.36.
This price level was last seen on January 20, but the asset faced strong resistance at that time. If XRP can maintain its momentum this time, it could push past the $3.36 mark.
Currently, XRP is trading at $2.56, having seen a 4.41% drop on February 21. However, market analysts are optimistic about a recovery that could see XRP retesting the $2.68 resistance and ultimately breaking out, potentially paving the way for a move toward $3.36 and beyond.
Keep an eye on XRP as it tests these critical levels, and watch for a potential breakout that could signal a new bullish phase for the cryptocurrency.
Follow on Google News
Leave a comment