Ripple's Breakout Observation: An XRP Pattern Indicates a $5 Target
XRP is forming a cup and handle pattern near $1.91, leading analysts to monitor a potential breakout at $3.65 towards the $5.00 level.
XRP’s token currently trades around $1.91 with over $2.3 billion in 24-hour trading volume, showing a 2% decline in the past day and 8% over the last week. Analysts are noting key support levels as new technical patterns emerge, including one that may indicate a movement toward the $5 mark.
Breakout Watch as XRP Forms Cup and Handle
Analyst DrBullZeus shared a chart depicting a cup-and-handle pattern over the two-week timeframe, which has evolved over several years. This pattern features a rounded base beginning in 2018 and a handle forming below the all-time high of $3.65.
The breakout will only be confirmed with a price surge beyond this resistance. If this occurs with strong momentum, the price of XRP could ascend towards the $5.00 target.
$XRP at some stage will be the biggest altcoin play in the market. This cup and handle pattern could target $5.00š ā DrBullZeus (@DrBullZeus) January 23, 2026
In addition, ChartNerd has highlighted a long-term ascending triangle formation. This includes rising support alongside a flat resistance ceiling, which has seen XRP developing higher lows since 2018. The price is now testing the 20-month EMA that traders closely monitor.
In a recent post, ChartNerd commented:
āHold hereā¦ the sky becomes the limit. Lose the mark, we adjust our analysis.ā
As long as XRP remains above the support level, the positive outlook persists; however, a drop below could change this view.
On a smaller timeframe, XRP is creating a falling wedge structure, which showcases a clear downtrend with the price stabilizing between established support and resistance. ChartNerd has identified $1.80 as a crucial point labeled the āDefence Rail.ā
You may also like:
- Another XRP ETF Streak Ended This Week as Rippleās Price Slumps Below $2
- Ripple (XRP) Isnāt āBreaking Downā Yet ā But Sellers Still Havenāt Let Go
- XRP ETFs See Biggest Outflows to Date as Ripple Price Dumps Again
Should XRP maintain above the $1.80 mark and break through the wedge resistance, a rebound toward the $2 level could occur.
Sentiment Weakens, But Volume Remains Aligned
XRP has recently entered into a heightened fear state, as indicated by sentiment data. Retail traders have become more cautious, reflected in decreased bullish remarks. Historically, these kind of negative sentiments often present at critical market turning points, albeit a price recovery is not guaranteed.
CryptoQuant recorded a 0.61 correlation between XRP’s price and volume flows on Binance, indicating that price movements remain in sync with actual trading activities. Additionally, XRP ETFs experienced net inflows of $2.09 million on January 22, according to SoSoValue.
