Understanding the pattern
The chart displays a long, rounded bottom extending from late 2024 into mid-2025, representing the cup portion of the structure. This section formed as the asset’s price rose rapidly between November 2024 and January 2025, and then began falling in early February.
This decline continued into April when XRP hit the bottom of the cup formation. However, the asset began a gradual recovery in the following months, and this uptrend picked up steam in July, pushing XRP to an all-time high of $3.65.
This recovery completed the cup formation. However, the weeks following that surge put XRP in another consolidation phase and began forming the handle. In late August, the asset dipped below $3, and this decline carried into early September when it fell to $2.71.
The Cup and Handle Pattern
Cup and handle formations are widely followed in technical analysis because they suggest a continuation of upward momentum if the breakout occurs above the handle resistance. The structure often signals a possible strong rally, provided that trading volumes support the move.
The handle typically reflects a pause before a potential breakout, as market participants reassess before making a decisive move. This consolidation phase is much shorter, and on the chart shared by CryptoBull, XRP’s recent candles align with the expected final stages of the handle.
Measuring Potential Gains
With XRP currently priced at $2.83, the $8 target represents a projected increase of about 182%. Analysts who examine this pattern often calculate potential upside by measuring the depth of the cup and projecting it upward from the breakout level.
The cup formed for over nine months, while the handle has been developing for about two months, with price action consolidating just under the resistance level. This timing aligns with the typical structure of the pattern, where the handle is shorter relative to the cup, yet remains a key confirmation stage.
A move toward $8 would put XRP at unprecedented heights. However, the validity of the move depends on whether the digital asset can sustain momentum and close decisively above the horizontal resistance marked on the chart.
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