Key Highlights:

• On Thursday, XRP maintained a price of $2.82, with forecasts suggesting a potential cup-and-handle breakout that could lead to a rally of 120% to reach $6.20.
• The XRP/USD trading pair must shift the price ranges of $3 to $3.10 into support, while $2.80 is crucial for traders.

XRP price has experienced a decrease over the past week, hitting a low of $2.81 on Thursday, resulting in a 23% decline from its multi-year peak of around $3.66.

XRP/USD Daily Chart
Source: Cointelegraph/ TradingView

Despite this dip, technical analysis and online data indicate XRP retains potential for upward movement.

‘Most Bullish Pattern’ According to Analyst

Analyst Mickybull Crypto has highlighted a chart indicating a significant breakout for XRP’s price. Referring to it as the ‘most bullish pattern,’ the analyst pointed out XRP trades within a cup-and-handle chart formation at $2.81.

XRP/USD 3-Day Chart
Source: Cointelegraph/ TradingView

The projected target from this pattern is $6.20, which signifies a possible 120% increase from current values.

“The breakout will be wild.”

Other analysts express optimism regarding XRP’s potential ascent, noting significant whale activity and anticipated XRP ETF approvals. For the near term, trader Dom has indicated that flipping $3.12 is pivotal to initiate a rally.

XRP’s rapid consolidation at the monthly control point, where the most volume traded over the last 30 days sits around $3, is promising.

Dom remarked:

“Flipping that $3.08 - $3.12 area will trigger a rally.”

XRP 8-Hour Analysis
Source: Dom

The same price level aligns with the upper boundary of the cup’s handle visible in earlier charts. However, the daily relative strength index (RSI) of XRP has dipped to 42 from 57 over the last week, indicating waning bullish momentum. Consequently, a price correction towards the lower boundary of the handle at $2.55 could occur, presenting a good entry point for late investors.

Liquidations at $2.90 and Above

Many traders are eyeing potential upside liquidity as ask orders gather above $2.90 and $3, according to CoinGlass.

XRP Liquidation Heatmap
Source: CoinGlass

Breaking through the significant $3 mark may lead to a short squeeze, compelling short sellers to close their positions, propelling XRP towards $3.20. The UTXO Realized Price Distribution shows solid price support at $2.80, where nearly 2.5 billion XRP were accumulated.

XRP UTXO Realized Price Distribution
Source: Glassnode

This foundation is expected to act as a robust support zone, mitigating sell-offs and averting deeper corrections. Maintaining a price above $2.80 is critical for sustaining recovery efforts toward $3 and ultimately achieving new all-time highs.