XRP recently encountered resistance at the $0.60 mark, yet a Cup and Handle pattern observed on the 4-hour chart indicates a possible upward movement toward $0.70.
Over the weekend, XRP successfully reclaimed the $0.60 threshold for the first time this September, reaching a one-month peak of $0.6129 on Saturday. However, the token soon entered a corrective phase, retracting from these gains. As of now, XRP is trading around $0.59, just below the significant psychological barrier of $0.60, which has consistently posed a challenge for the cryptocurrency.
– Advertisement –
**XRP Breaks Cup and Handle Formation**
In light of recent developments, market analyst Steph highlighted in a YouTube analysis that XRP successfully surged above the neckline of a classic cup-and-handle formation on the 4-hour chart during the weekend’s momentum. Chart data shows that XRP had been attempting to surpass this level since September 15.
**XRP 4H Chart**
Notably, the current price action suggests a retest of this breakout level. Should XRP sustain four-hour closes above the $0.59–$0.60 range, it could confirm a continuation of the uptrend. Conversely, failing to maintain this support might lead to additional downward movement.
– Advertisement –
Steph posits that this formation indicates a target range of $0.69 to $0.70, representing a potential increase of 17.7% from the current price. Achieving this target would mark a six-month high for XRP. However, the analyst warns against becoming overly optimistic, as short-term volatility and liquidity traps may arise.
**XRP Resistance Levels and Liquidity Concerns**
According to Steph, XRP must first overcome the $0.64–$0.65 zone, which aligns with the 0.786 Fibonacci level. This particular level has historically acted as a significant resistance point, especially during the earlier months of April and August this year.
If XRP successfully navigates past this zone, the next major target will be the $0.70 mark, completing the anticipated breakout from the cup-and-handle pattern.
– Advertisement –
However, Steph cautions that liquidity risks could influence the market’s direction. XRP’s liquidation heat map indicates a substantial concentration of short positions, with over $52 million in liquidity situated around the $0.66 range. Triggering these shorts could result in a price surge as liquidity is pursued.
**Attorney Morgan’s Insights on XRP’s Challenges**
In parallel, legal expert Bill Morgan commented on XRP’s persistent struggle with the $0.60 resistance level. He pointed out that XRP’s inability to maintain its recent breakout could signal a potential decline below the 20-day EMA. Referring to an analysis from Investing, Morgan noted that the $0.60 mark has historically served as a robust resistance level, and failing to consistently breach it could lead to further consolidation.
While long-term XRP supporters remain hopeful for new all-time highs, Morgan urges investors to exercise caution. He emphasizes that until XRP can decisively surpass $0.60 and hold that position, any immediate price surges may prove to be fleeting.
Moreover, data from CryptoQuant indicates that XRP reserves on Binance have been increasing since September 11, rising from 2.941 billion to 2.983 billion tokens within 12 days. However, the market noticed a slight decline yesterday.
**XRP Binance Reserve | CryptoQuant**
**Disclaimer:** This content is for informational purposes only and should not be viewed as financial advice. The opinions expressed in this article may reflect the author’s personal views and do not necessarily represent those of The Crypto Basic. Readers should conduct their own research before making any investment decisions. The Crypto Basic is not liable for any financial losses.