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

Key takeaways:

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

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

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

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

XRP has the “most bullish pattern”: analyst

Analyst Mickybull Crypto shared a chart projecting a massive breakout in XRP’s price. 

Described as the “most bullish pattern,” Mickybull Crypto identified XRP’s price trading within a cup-and-handle chart pattern at $2.81, as illustrated on the three-day chart below.

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

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

“The breakout will be wild.”

Other analysts remain optimistic about XRP’s potential to move higher, citing strong whale accumulation and optimism around likely XRP ETF approvals. 

In the shorter term, Dom, an independent trader, said that $3.12 is the most important level to flip to “trigger a rally.”

On the eight-hour chart, the trader said that the price has been consolidating at the monthly point of control, which is the price level where the most trading volume occurred over the last 30 days, around $3.

While this is good as it “often precedes a break from value,” turning it into support is crucial, Dom wrote, adding:

“Flipping that $3.08 – $3.12 area will trigger a rally.”

The same level coincides with the upper boundary of the cup’s handle shown in the previous chart.

However, despite the positive macro outlook, XRP’s daily relative strength index has dropped to 42 from 57 over the last seven days, suggesting that bullish momentum is cooling.

As such, a correction toward the handle’s lower boundary at $2.55 is possible and should provide a good entry point for late longs.

Liquidations sitting at $2.90 and above

Several traders are watching a potential upside liquidity grab with ask orders clustering above $2.90 and $3, in particular, according to CoinGlass.

Breaking the psychological $3 level could spark a short squeeze, forcing short sellers to close positions and driving XRP toward $3.20.

The UTXO Realized Price Distribution (URPD) shows robust price support around $2.80, where nearly 2.5 billion XRP were acquired.

This base should serve as a solid support zone, absorbing selling pressure and preventing deeper corrections. 

As Cointelegraph reported, holding above $2.80 is crucial for a sustained recovery toward $3 and ultimately achieving 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.