The XRP price is getting ready for a significant pump, as a new Cup and Handle pattern has just formed on its chart. A crypto analyst who identified the pattern has released an analysis, predicting that XRP could rise to $3.35, marking a new local high for the cryptocurrency.
Cup And Handle Pattern To Trigger A Price Surge
The Cup and Handle pattern is a well-known bullish continuation pattern in which the price of a cryptocurrency moves upward in a rounded cup and corrects downwards as it forms a handle. This pattern is considered a bullish signal that marks the potential for a breakout.
Currently, XRP is forming a distinct price chart pattern. Ali Martinez, a prominent crypto analyst, shared a brief analysis of this newly formed technical pattern, projecting a surge to new highs for the price.
The rounded bottom of the cup in the pattern indicates a period of accumulation during which selling pressure decreases and buyers gain control. After XRP’s price surge to new highs earlier this year, the cryptocurrency experienced a major pull back that pushed its value below $3, forming the downward-sloping consolidations seen in the pattern’s handle.
Martinez notes that if the coin can break out of the handle’s resistance, where volatility exists more, the next potential target would be $3.35. Currently, the XRP price is trading at $2.6, and Martinez has marked its critical resistance level between $2.7 and $2.8. These resistance levels align with the upper trendline of the handle pattern, which, once broken, would set the stage for a strong rally.
Notably, a surge to $3.35 would represent a 28.8% increase in its price from its current market value of $2.6. As of writing, the cryptocurrency has increased by 9.6% over the last seven days after experiencing a decline of over 14% in the past month.
XRP Enters Phase 4 For Market Domination
Despite current volatility and price declines, a crypto analyst, identified as ‘the XRP guy,’ believes that the token’s price is getting closer to dominating the market. The analyst revealed that the cryptocurrency is currently in phase 4 of its rise to dominance, with this stage characterizing the potential end of the legal battle between Ripple and the US SEC.
The analyst showed that XRP had already completed the previous phases. The first phase was the launch of the RLUSD stablecoin; the second was Donald Trump’s inauguration as the US President and the third was Gary Gensler’s resignation as the former SEC chair.
The next three stages are set to become significant catalysts for the asset’s price. The crypto expert also mentioned the start of the highly anticipated altcoin season, Ripple’s potential partnership with big banks, and the possible approval and launch of an XRP ETF. The analyst suggests that these events will make it incredibly bullish and recommends investors hold their coins and refrain from selling.
Featured image from Adobe Stock, chart from Tradingview.com
