XRP's Optimistic Breakout: Could Price Soar to $6?

XRP remains above the $2.80 mark as of Thursday, enhancing its potential to break out of a cup-and-handle pattern targeting $6.20.

Key Insights:

XRP was priced at $2.82, suggesting a possible rally of 120% to $6.20.
The XRP/USD pair needs to maintain support between $3 and $3.10; $2.80 is critical for traders.

XRP’s current price reflects a decline over the past week, settling at $2.82 after touching a low of $2.81, which is a 23% decrease from multi-year peaks around $3.66.

XRP/USD Daily Chart Source: Cointelegraph/ TradingView

Although XRP’s price has dipped, favorable technical indicators and online data suggest the upward trajectory remains.

Analyst Insights

Analyst Mickybull Crypto recently charted XRP’s potential breakout, examining the cup-and-handle chart pattern at $2.81. He believes the price could surge up to $6.20.

“The breakout will be wild.”

XRP/USD Three-Day Chart Source: Cointelegraph/ TradingView

Further analysts express optimism for XRP’s growth, driven by significant whale activity and prospects around the potential approvals of XRP ETFs.

In the short term, trader Dom noted that flipping $3.12 is essential for a rally.

While a healthy consolidation has occurred, caution is warranted as the relative strength index has fallen to 42, suggesting reduced bullish momentum.

A potential correction toward the lower boundary at $2.55 may present a favorable entry for late investors.

Liquidations Targeting $2.90 and Above

Traders note a possible liquidity grab with order clustering above $2.90, which, if broken, could trigger a short squeeze, pushing XRP closer to $3.20.

XRP Liquidation Heatmap Source: CoinGlass

The UTXO Realized Price Distribution indicates solid support around $2.80, where significant XRP acquisitions occurred. This support level is expected to mitigate selling pressure and maintain market stability.

As previously reported, retaining prices above $2.80 is vital for a consistent recovery towards $3 and ascendance to new highs.

This article does not provide investment advice. Readers are encouraged to conduct their own research when making financial decisions.