XRP Bulls Eye $2.83 as Cup-and-Handle Pattern Forms

Coin WorldWednesday, Mar 5, 2025 10:40 pm ET

1min read

XRP, the native cryptocurrency of Ripple, has been experiencing price fluctuations in recent days, but technical analysis suggests a potential bullish breakout. The asset has formed a bullish cup-and-handle pattern on the four-hour timeframe, and if it closes a four-hour candle above the $2.55 mark, it could rally by 12% to reach the $2.83 level.

The neckline of the pattern coincides with the 200 Exponential Moving Average (EMA) in the same timeframe, which also acts as a resistance level. XRP is currently trading near $2.52, having registered a modest gain of 1.10% in the past 24 hours. However, the ongoing inflow of XRP from exchanges is causing prices to struggle, with nearly $13 million worth of XRP tokens potentially offloaded onto exchanges.

At press time, traders betting on the long side are currently dominating, while those betting on the short side appear exhausted. Traders are over-leveraged at $2.40, having built $57 million worth of long positions, while $2.55 is an over-leveraged level where traders have built $8.50 million worth of short positions. This over-leveraged positioning suggests that bulls are strongly supporting XRP in an attempt to breach the current resistance level.

Analysts have varying opinions on XRP's price trajectory. Some predict a strong finish for XRP by the end of December, with projections suggesting a potential profit of 32.85%, while others warn of a significant risk of crashing down to $1. Technically, XRP appears ready for a bullish reversal, with green AO histogram bars indicating a potential trend change. The cryptocurrency has bounced off a key support level of $2.14 and continued to trade within a tight range, suggesting a period of consolidation before the next major move.

The ongoing legal clarity surrounding Ripple and the SEC's appeal strategy are key factors influencing XRP's price. A resolution to the legal battle could potentially drive XRP's price higher, while continued legal uncertainty may send prices below $1.50. Looking ahead to 2025 and beyond, the outlook for XRP is mixed, with some analysts predicting a possible uptrend in 2028, but these projections are subject to

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