The crypto market has seen a resurgence today as the overall market cap retraces the $4 trillion mark. Altcoins such as XRP have recorded gains following the broad market rally.
XRP is currently trading at $2.94, having gained over 3% over the past 24 hours. Moreover, its market cap and trading volume have surged to $176 billion and $6.57 billion, respectively.
XRP Analyst Suggests Potential Cup and Handle Breakout
Meanwhile, market analyst CryptoBull has spotted a major pattern on the XRP chart. He suggests that the token is approaching the end of a classical cup and handle formation on the weekly timeframe, which typically precedes a price breakout to higher prices.
The structure began to form after XRP’s over 500% rally in November, with its neckline at the high of $3.40 in January. After a period of consolidation, the token surged to $3.66 in July, completing the cup section of the chart.
Meanwhile, the handle began forming immediately, with XRP closely following the structure’s shape. CryptoBull highlighted that XRP is slowly filling up the structure, and things could start getting interesting for XRP.
Upon breakout, the market watcher predicted a rally to a new all-time high of $8, representing a 172% increase from the current market price.
Adding further to CryptoBull’s bullish thesis, another market expert highlighted XRP’s recent trading behavior. CryptoWZRD noted similarities between the current chart setup and the arrangement of the 2017 bull run in XRP.
The altcoin has been in an accumulation phase since the beginning of this year. Notably, this market phase historically occurred in 2017 before XRP’s explosion. The analyst identifies the immediate resistance level as $3.65, predicting that a decisive break past it would build momentum for a surge towards $4.50.
Technical Analysis – Will XRP Price Rally Hold Further?
Looking at the technical indicators on the daily chart, the XRP price looks primed for a further uptrend as the selling pressure eases. The Relative Strength Index (RSI) is steadily climbing and has reached 51, indicating a neutral market sentiment. With a further journey before it reaches the oversold region, XRP could rally to break past the resistances at $3 and $3.20.
Additionally, the Moving Average Convergence Divergence (MACD) indicator is trending toward the positive region as the crossover develops. The MACD and signal line have crossed, suggesting a trend reversal from the downtrend. Should the current trend persist, the histogram could begin printing green bars, marking a steady upward trend.
Evans Kelvin
