XRP's Bullish "Cup-and-Handle" Pattern Predicts 25% Gain

XRP's price has formed a bullish "cup-and-handle" pattern on the four-hour chart, suggesting a potential 25% gain as exchange outflows return. The XRP/USD pair has gained 10% over the last seven days, following a sell-off period that saw it drop to a low of $1.76 in early February. The recent price action indicates that XRP may rise from current levels, particularly as exchange flows have flipped negative, reducing selling pressure on the market.

The XRP spot exchange flows turned red on Feb. 16 after three days of inflows, signaling a decrease in selling pressure. This trend has been consistent since a November 500% price rally, indicating that investors have not taken much profit despite the price increase. Additionally, data shows that XRP supply on exchanges has been trending down since mid-November 2024, coinciding with a 330% rally in XRP's price.

From a technical perspective, the XRP/USD pair has been forming a "cup-and-handle" chart pattern on its four-hour time frame since Feb. 1. This pattern is associated with strong upward momentum and is resolved when the price breaks above the handle, rallying to about an equal size to the prior decline. The XRP/USD daily chart illustrates this potential bullish setup, with the price now trading higher inside the handle range and pursuing a recovery toward the neckline resistance at $2.75.

A decisive four-hour candlestick close above the neckline could lead the XRP price to confront resistance from the $2.84 range high. Breaking this barrier would clear the path toward the technical target of the prevailing chart pattern below $3.40, up 25% from the current level. Several analysts agree with this outlook, with Dark Defender stating that XRP price needs to overcome resistance at $2.77 to bring $3 into the picture. Fellow analyst Kwantxbt said the bullish divergence displayed by momentum indicators on the daily timeframe could see the price rise toward the $2.85 to $3.15 range.