The XRP price is showing signs of a potential bullish reversal as a recognizable cup and handle pattern takes shape on the 30-minute chart. Despite recent consolidation and market uncertainty, technical analysts are watching closely for a breakout that could propel XRP to new highs in the coming weeks.
This pattern, long respected in technical analysis circles, often precedes significant upward momentum—especially when confirmed by strong volume and supportive market developments. One such analyst, Ali Martinez (also known as Ali Charts), remains optimistic about XRP’s short-term trajectory, even amid ongoing price corrections.
Understanding the Cup and Handle Formation
A cup and handle pattern is a bullish continuation formation typically seen after an uptrend, followed by a consolidation phase. The "cup" resembles a rounded U-shape, while the "handle" forms as a smaller downward drift or sideways movement along the upper edge of the cup—essentially a final shakeout before bulls regain control.
In XRP’s case, the cup portion appears to have formed between February 4 and February 15, 2025. After peaking at $2.80 on February 4, XRP entered a corrective phase, dropping as low as $2.43. However, instead of breaking into a full bearish trend, the price stabilized and began recovering—laying the foundation for the cup.
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The rebound accelerated on February 14—Valentine’s Day—when news broke that the U.S. Securities and Exchange Commission (SEC) had officially acknowledged the 19b-4 filing for the Grayscale XRP ETF with NYSE Arca. Just a day later, the SEC also acknowledged the 21Shares XRP ETF application, injecting fresh optimism into the market.
These regulatory developments acted as catalysts, pushing XRP from $2.43 to a high of $2.83 within 48 hours—an impressive 16.4% surge. This rapid climb effectively completed the cup portion of the pattern.
Now, the market is witnessing what may be the formation of the “handle.” Over the past two days, XRP has pulled back from $2.83 to around $2.68, representing a 5.3% decline. While this might concern some investors, analysts interpret this as a healthy consolidation—a final test of support before a potential breakout.
What Happens After the Handle Breaks Out?
According to Ali Martinez’s technical assessment, once the handle breaks upward with sufficient momentum, XRP could experience a powerful rally. His chart analysis suggests a target price of $3.35, which would represent approximately a 25% increase from current levels.
Reaching $3.35 would not only surpass previous resistance zones but also mark a critical psychological milestone for XRP traders and long-term holders.
But what happens if momentum continues beyond that?
Another well-known market observer, CryptoWZRD, previously highlighted in a January 2025 analysis that a confirmed break above $3.35 could open the door to even higher targets. Given historical price behavior and pattern projections, such a move could push XRP toward **$4.00**, potentially setting a new all-time high.
This scenario hinges on several factors:
- Sustained buying pressure after the breakout
- Continued positive sentiment around XRP ETF approvals
- Broader bullish momentum across the cryptocurrency market
Until then, traders should monitor key support levels near $2.60. A drop below this zone could invalidate the cup and handle structure and delay any bullish resurgence.
Key Support and Resistance Zones to Watch
To better understand XRP’s next move, it’s essential to identify critical price levels:
- Immediate Resistance: $2.83 – recent swing high; must be reclaimed for bullish confirmation
- Strong Resistance: $3.35 – projected target based on cup and handle measurement
- Psychological Ceiling: $4.00 – potential new all-time high if momentum builds
- Support Zone: $2.60 – crucial floor; a break below may signal weakness
- Strong Support: $2.43 – February low; likely strong demand area if retested
Volume will play a vital role in validating any breakout. Traders should look for increased trading activity coinciding with price moves above $2.83 to confirm institutional or large-cap investor participation.
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Frequently Asked Questions (FAQ)
Q: What is a cup and handle pattern?
A: It's a bullish technical chart formation consisting of a U-shaped "cup" followed by a smaller downward "handle." It typically signals a pause before an upward breakout.
Q: Is the XRP cup and handle pattern confirmed yet?
A: Not fully. While the cup appears complete, the handle is still forming. A decisive breakout above $2.83 with strong volume is needed for confirmation.
Q: How high could XRP go if the pattern plays out?
A: Based on technical projections, XRP could reach $3.35 in the short term. A break above that level may lead to further gains toward $4.00.
Q: Could ETF news impact XRP’s price movement?
A: Yes. The SEC’s acknowledgment of both Grayscale and 21Shares’ XRP ETF filings has already boosted sentiment. Final approval could trigger even stronger rallies.
Q: What would invalidate this bullish outlook?
A: A sustained drop below $2.60, particularly if accompanied by high selling volume, could suggest bearish dominance and invalidate the pattern.
Q: Is technical analysis reliable for cryptocurrencies like XRP?
A: While no method is foolproof, technical analysis provides valuable insights into market psychology and trend behavior—especially when combined with fundamental catalysts.
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Final Thoughts
While no outcome is guaranteed in volatile markets, the emerging cup and handle pattern on XRP’s 30-minute chart presents a compelling opportunity. Backed by recent regulatory progress—including SEC acknowledgments of major XRP ETF filings—the technical setup suggests that a breakout could be on the horizon.
Traders should remain vigilant, watching for confirmation above $2.83 and monitoring volume trends closely. If the pattern holds, XRP could surge toward $3.35—and possibly beyond to $4.00—marking a pivotal moment for the asset.
As always, investors are encouraged to conduct independent research and consider risk management strategies before entering any position.
Disclaimer: This content is for informational purposes only and should not be construed as financial advice. The views expressed are based on technical analysis and public information and do not represent official endorsements. Always perform due diligence before making investment decisions.