XRP Bulls Must Finally Overcome $3 to Start a Potential 120% Rally

Main takeaways:

• XRP traded at $2.82 on Thursday, with the potential for a cup-and-handle breakout forecasting a 120% rally to $6.20.

• The XRP/USD pair needs to turn $3-3.10 into support, as $2.80 remains the key level of interest to traders.

The price of XRP (XRP) has fallen over the past seven days, reaching a low of $2.81 on Thursday. This resulted in a 23% decline from multi-year highs of around $3.66 to the current level of $2.82.

Despite the pullback, the strong technical setup on higher time frames and online data suggest that XRP’s uptrend remains intact.

XRP has the “most bullish pattern”: Analyst

Analyst Makeball Crypto subscriber Chart showing massive breakout in XRP price.

Describing Crypto as the “most bullish pattern,” Mickybull identified XRP price trading within a cup and handle chart pattern at $2.81, as shown in the three-day chart below.

Related to: How XRP’s legal victory turned it into Wall Street’s favorite cryptocurrency

The chart indicates that the analyst expects further upside for the altcoin, with the measured target for the pattern set at $6.20, or a 120% upside from current levels.

“The breakout is going to be wild.”

Other analysts remain optimistic about XRP’s upside potential, citing strong whale accumulation and optimism about potential XRP ETF approvals.

In the short term, Dom, an independent trader, He said That $3.12 is the most important level to flip to “stimulate a rally.”

On the eight-hour chart, the trader said the price is consolidating at the monthly control point, the price level where the highest trading volume occurred over the past 30 days, around $3.

While this is a good thing because it “often precedes a disconnect with value,” turning it into support is crucial, Dom wrote, adding:

“A flip of the $3.08-$3.12 area will lead to a rally.”

The same level coincides with the upper border of the cup handle shown in the previous chart.

However, despite the positive macro outlook, XRP’s daily RSI fell to 42 from 57 over the past seven days, indicating that the bullish momentum is cooling down.

As such, a correction towards the lower end of the handle at $2.55 is possible, and should provide a good entry point for late buy trades.

Clearances for $2.90 and up

Many traders are monitoring a potential bullish liquidity grab with call orders gathering above $2.90 and $3, in particular, according to Queen Glass.

A break of the $3 psychological level could spark selling pressure, forcing short sellers to close their positions and pushing XRP towards $3.20.

UTXO Realized Price Distribution (URPD) He appears Strong price support around $2.80, where approximately 2.5 billion XRP were acquired.

This base should act as a strong support area, absorbing selling pressure and preventing deep corrections.

As Cointelegraph reported, holding above $2.80 is crucial for a sustained recovery towards $3 and eventually achieving new all-time highs.

This article does not contain investment advice or recommendations. Every investment and trading move involves risks, and readers should conduct their own research when making a decision.