Key takeaways:
XRP traded at $2.82 on Thursday, with a potential cup-and-handle breakout indicating a 120% rally to $6.20.
The XRP/USD pair must convert the $3-$3.10 range into support, as $2.80 remains a significant level for traders.
XRP (XRP) has experienced a decline over the past week, dropping to a low of $2.81 on Thursday. This marks a 23% decrease from its multi-year peak of approximately $3.66 to the current value of $2.82.
Despite this pullback, strong technical indicators on higher time frames and online data suggest that XRP’s upward potential remains promising.
XRP shows the “most bullish pattern”: analyst
Analyst Mickybull Crypto shared a chart forecasting a significant breakout for XRP’s price.
Labeled the “most bullish pattern,” Mickybull Crypto observed XRP’s price trading within a cup-and-handle chart pattern at $2.81, as depicted in the three-day chart below.
Related: How XRP’s legal victory turned it into Wall Street’s favorite crypto
The chart indicates the analyst anticipates further gains for the altcoin, with a target of $6.20, implying a 120% increase from current levels.
“The breakout will be wild.”
Other analysts maintain a positive outlook on XRP’s potential for growth, noting strong whale accumulation and optimism surrounding possible XRP ETF approvals.
In the short term, trader Dom stated that $3.12 is essential to flip in order to “trigger a rally.”
According to the eight-hour chart, the price has been stabilizing at the monthly point of control, where the most trading volume occurred over the last 30 days, around $3.
While this is encouraging as it “often precedes a break from value,” converting it to support is critical, Dom added:
“Flipping that $3.08 – $3.12 area will trigger a rally.”
This level aligns with the handle’s upper boundary from the previous chart.
However, despite the favorable macro environment, XRP’s daily relative strength index has fallen to 42 from 57 over the past week, indicating that bullish momentum is waning.
Thus, a correction toward the handle’s lower boundary at $2.55 is possible, providing a solid entry point for late buyers.
Liquidations at $2.90 and above
Many traders are observing a potential upside liquidity grab, with ask orders clustering above $2.90 and $3, especially, according to CoinGlass.
Breaking through the psychological $3 level could trigger a short squeeze, compelling short sellers to close their positions and pushing XRP toward $3.20.
The UTXO Realized Price Distribution (URPD) demonstrates robust price support around $2.80, where nearly 2.5 billion XRP were bought.
This foundation should act as a strong support zone, absorbing selling pressure and preventing more significant corrections.
As Cointelegraph highlighted, staying above $2.80 is critical for a sustained recovery towards $3 and ultimately reaching new all-time highs.
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 a decision.
