Heres XRP Breakout Target as XRP Secures Daily Cup and Handle Pattern

Thom Sieloff, a notable analyst, confirms that XRP has formed a cup and handle pattern on the daily timeframe.The market commentator disclosed this in one of his latest XRP analyses as price continued to consolidate around key levels. For context, since dropping from the $2.83 high on Feb. 15, XRP has battled the bears between $2.4 and $2.7, struggling to secure a breakout but maintaining major support.Data from the 1D chart shows that this consolidation phase has been part of a broader market structure. This short structure began when XRP collapsed from its previous highs above $3 as bearish forces retook control of the scene at the start of February.XRP Forms the Cup and Handle PatternIn particular, XRP dropped from a top of about $3.21 on Jan. 28, maintaining the downturn until it hit a floor price of $2.26 on Feb. 7. From this level, the altcoin witnessed a consolidation as selling pressure waned. This range-bound phase lasted until a recovery sprang up on Feb. 12, pushing XRP to the $2.83 high on Feb. 15.Interestingly, this price action from Jan. 28 to Feb. 15, featuring a gradual but steep drop, a consolidation phase, and a subsequent recovery, resulted in the formation of a cup pattern. This is the first pattern that appears, signaling that the market is on the verge of forming a cup and handle structure.Expectedly, the broader structure seems to have materialized over the past few days. With the latest pullback from $2.83 and the subsequent consolidation between $2.4 and $2.7, XRP formed the handle pattern of the cup and handle structure.

XRP Cup and Handle Pattern

After pointing out this structure, Sieloff asked his audience where they think the price could go from this level. For the uninitiated, a cup and handle pattern is typically a bullish continuation pattern featuring a larger rounded cup and a smaller, often sloping, handle. XRP Eyes $3.36 as Breakout TargetNotably, the handle often represents a short period of consolidation before a breakout. However, this breakout only occurs after the price has broken above the handle's resistance. In this case, the handle's resistance could lie around the pivotal $2.7 price mark.Nonetheless, should this breakout occur, it remains unclear how much XRP could rally. In a subsequent disclosure, Sieloff posed the question to xAI's chatbot Grok. According to Grok, assets often rally by 20 to 30% from the breakout point of a cup and handle structure.https://twitter.com/RealThomSieloff/status/1892737551334588604Citing this data, the AI chatbot projected that XRP could rally by 25.37% from the proposed breakout point at $2.68, essentially claiming a price of $3.36. The last time XRP saw the $3.36 mark was on Jan. 20, but the asset faced intense resistance at the time. A decisive push could this time sustain the price level.Currently, XRP changes hands at $2.56, having dropped by a massive 4.41% on Friday, Feb. 21. A recovery push could allow it to retest the $2.68 resistance, looking to break above the handle pattern. Market analyst Polly already expects a run to $6 this month once a recovery push occurs.

Text source: The Crypto Basic

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