In a recent technical study, a cryptocurrency expert has observed a bullish 'Cup and Handle' pattern on the daily chart of XRP. This pattern suggests the possibility of significant gains in the future. The observed pattern has a distinctive 'cup' shape that resembles a rounded bottom, accompanied by a 'handle' indicating a minor downward drift. This pattern implies a continuation of the previous rising trend.
The XRP cryptocurrency exhibited the formation of a cup and handle pattern within the daily time frame. The objectives of $1.05 and $1.88 were established using the Elliott Waves methodology. Additionally, the presence of the Cup-Handle pattern suggests that XRP has the potential to hit these levels.
The presence of a Cup & Handle pattern suggests the possibility of a significant 200% rally in the short-term.
The cup shape, which started in July and persisted until October, reached its zenith at about $1.05, a significant degree of resistance. The price of XRP thereafter saw a decline of around 52%, exhibiting a notable correlation with the traditional framework. Ideally, the optimal adjustment range for the cup's top-to-bottom measurement should not exceed 50%.
The following range of values has established a zone of resistance, spanning from $0.75 to $0.6649. This range represents a retracement of nearly 20% from the highest point of the cup formation. Significantly, the observed pattern indicates a bullish continuation, wherein the 'cup' signifies a phase of consolidation succeeded by a breakthrough, while the 'handle' denotes a minor retracement before the price resumes its upward movement.
The chart displays significant support and resistance levels that are essential for maintaining the validity of this pattern. The handle component of the pattern exhibits possible support at a price level of $0.5286. It is crucial to note that this support level should not be breached by a closing below the primary support level of $0.6044 for two consecutive days in order to sustain the optimistic perspective.
At now, the chart illustrates that XRP is being traded at levels that above the established support thresholds, while encountering imminent resistance in the upper range. The subsequent notable level of resistance is observed inside the handle formation, specifically identified at a price point of $0.6649. The confirmation of the pattern's expected conclusion and subsequent upward trajectory towards the specified price goals may be established by a significant breach above this level.
The analyst provides more analysis about the prospective movements of the handle, suggesting the possibility of an extension into the $0.5286 Support level. In order to confirm a sustained closure, it is necessary for the primary support level of $0.6044 to be maintained for a consecutive period of two days. Currently, the response is negative. Nevertheless, he further stated, "The primary framework remains intact, and it is anticipated that XRP will reach values of $1.05 and $1.88 in the near future."
The present XRP price is encountering a significant resistance point as shown by the Fibonacci retracement level analysis conducted on the 1-day chart. On the preceding Thursday, the value of XRP saw a decline, breaching the 0.382 Fibonacci level at $0.6275. Subsequently, it has failed to surpass this significant resistance level on a daily basis.
Additionally, the price of XRP is now situated inside the range of the 20-day and 50-day Exponential Moving Average (EMA), namely between the values of $0.6234 and $0.5919. In order for the bullish scenario to materialize, it is important for the price to surpass both the 20-day Exponential Moving Average (EMA) and the 0.382 Fibonacci level. In the event of this occurrence, Dark Defender's optimistic forecast may be slightly more attainable.
