A crypto analyst has drawn attention to a cup and handle pattern that formed on the XRP monthly chart and the analyst is predicting a remarkable rise to $34.
In the middle of the XRP price correction phase, CryptoInsightUK (@Cryptoinsightuk) has drawn the attention of the XRP community in a post on X to a cup and handle shape formed on the chart which he points out as a bullish signal. According to his analysis, the technical target for the pattern shown is around $34.
$XRP Cup & Handle ☕️
If we see a clean break of the descending diagonal Blue line, we could expect to see… pic.twitter.com/D9rM5LR02b
— Cryptoinsightuk (@Cryptoinsightuk) September 3, 2023
The Cup and Handle Pattern
This cup and pattern is created when the price dips and rises again to form a U-shape. This is then followed by a shorter consolidation phase which forms the handle. It is commonly used to identify a potential bullish trend in the price of an asset. In the case of XRP, a jump from its current trading price of $0.4977 to $34 will be an astonishing 6,700% increase.
In this instance, XRP’s journey from its all-time high of $3.84 in January 2018 to a price of just over $1.25 in November 2021 forms the cup shape. Although it suffered a decline after its all-time high, XRP was able to rally and climb back up to its high of $1.2562 in 2021.
From there, XRP showed an extended period of downward consolidation, forming the handle shape. This consolidation phase extended up until earlier this year. XRP was able to break out of the handle pattern in July, thanks to the surge in its price following the victory in the lawsuit against the SEC.
Although this was a notable turning point, CryptoInsightUK highlighted that XRP has been testing the top of the handle. It is worth noting that XRP experienced a sharp decline shortly after the lawsuit.
Could XRP Hit $34?
There is a sign of hope here though. CryptoInsightUK points out that a clean break off the blue descending line showing the top of the handle could lead to a huge appreciation in price.
While $34 seems to be an ambitious target, the crypto market has shown time and time again that no dream is too high and cryptocurrencies can always outperform expectations. A good example is a SHIB investor who lost out on a potential $40 million in profit because he withdrew early.
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