Main Points:
XRP was priced at $2.82 on Thursday, with a potential cup-and-handle breakout indicating a 120% surge to $6.20.
The XRP/USD pair must convert $3-$3.10 into support, as $2.80 remains a crucial level for traders.
XRP (XRP) has seen a decline over the past week, hitting a low of $2.81 on Thursday. This marks a 23% drop from recent highs of about $3.66 to the current $2.82.
Despite the recent dip, a solid technical framework on higher time frames and online data hint that XRP’s potential for growth remains strong.
XRP Displays the “Most Bullish Pattern”: Analyst
Analyst Mickybull Crypto shared a chart predicting a significant breakout in XRP’s pricing.
Labeled as the “most bullish pattern,” Mickybull Crypto pointed out that XRP is trading within a cup-and-handle chart pattern at $2.81, as depicted in the three-day chart below.
Related: How XRP’s legal win made it a favorite among Wall Street cryptocurrencies
The chart indicates that the analyst foresees continued upward movement for the altcoin, with the target range for the pattern pegged at $6.20, implying a 120% increase from current values.
“The breakout will be impressive.”
Other analysts are also optimistic about XRP’s ability to rise, attributing it to significant whale accumulation and positive sentiments surrounding potential XRP ETF approvals.
In the short term, independent trader Dom stated that $3.12 is the key level that needs to flip to instigate a rally.
On the eight-hour chart, the trader mentioned that the price has been stabilizing at the monthly point of control—where the highest trading volume occurred in the last 30 days—around $3.
While this indicates a positive trend as it “often precedes a break from value,” turning it into support is essential, Dom expressed, adding:
“Flipping that $3.08 – $3.12 range will initiate a rally.”
This same level also aligns with the upper edge of the cup’s handle depicted in the earlier chart.
However, despite the favorable macro outlook, XRP’s daily relative strength index has decreased to 42 from 57 over the previous week, indicating that bullish momentum is slowing.
Consequently, a potential correction down to the handle’s lower boundary at $2.55 could occur, providing a favorable entry point for late positions.
Liquidations Concentrated at $2.90 and Upwards
Many traders are observing a potential upside liquidity grab as ask orders cluster above $2.90 and $3, according to CoinGlass.
A breach of the psychological $3 threshold could trigger a short squeeze, compelling short sellers to liquidate their positions and pushing XRP towards $3.20.
The UTXO Realized Price Distribution (URPD) indicates substantial price support around $2.80, where approximately 2.5 billion XRP were purchased.
This support zone should effectively absorb selling pressure, preventing more significant corrections.
As Cointelegraph previously reported, maintaining above $2.80 is critical for a lasting recovery towards $3 and ultimately realizing new all-time highs.
This article does not provide investment advice or recommendations. Every trading and investment decision involves risk, and readers are encouraged to conduct their own research.
