XRP Price Poised to Explode as It Completes a Bullish Cup and Handle Pattern

After continuous price fluctuations in recent days, XRP, the native token of Ripple Labs, is poised for notable upside momentum due to the formation of a bullish price action pattern on the four-hour timeframe.

Recent days have seen continuous price fluctuations in the market, especially for XRP, the native token of Ripple Labs. However, despite these movements, the crypto is poised for notable upside momentum.

This is due to the formation of a bullish price action pattern in the four-hour timeframe, which could propel XRP to higher levels in the days to come.

According to technical analysis by crypto analysts, XRP has formed a bullish cup-and-handle price action pattern in the four-hour timeframe and is on the verge of a breakout.

As the chart shows, the price has been met with resistance at the neckline of the pattern, which is also coinciding with the 200 Exponential Moving Average (EMA) in the same timeframe.

If the asset breaks out of the pattern and manages to close a four-hour candle at a price above $2.55, then it could surge by 12% to reach the $2.83 level in the days ahead.

However, the neckline of the pattern is coinciding with the 200 Exponential Moving Average (EMA) in the same timeframe, which is also an important level to watch out for as it is acting as a resistance.

If the bulls fail to break and close a four-hour candle above the pattern’s neckline, then the bears could step in and push the price back down towards the lower levels of the pattern, which is located in the $2.30 zone.

A move below this level could invalidate the bullish thesis and suggest that the bears are back in control.

On the other hand, a breakout above the pattern’s neckline could spark a strong rally in the days ahead, especially if the buyers manage to push the price through the 200 EMA.

This breakout could be sustained if there is enough volume to support the move and if there is no major selling pressure at the higher levels.

It remains to be seen whether the bulls can muster enough strength to break through the current resistance and propel XRP to new highs.

The cryptocurrency is currently trading hands at $2.52 at the time of writing, Friday morning, registering a 1.10% gain over the past 24 hours, while its trading volume dropped by 45% during the same period.

The potential reason behind XRP’s struggle to gain momentum could be the massive inflow from the exchanges.

According to the on-chain analytics firm Coinglass, investors and long-term holders have sold an enormous amount of $13 million into exchanges.

This huge volume of crypto being sold into exchanges is currently affecting the price as it could generate selling pressure and push the price downwards.

At press time, traders betting on the long side are currently dominating, while those betting on the short side appear exhausted. Traders are over-leveraged at $2.40, having built $57 million worth of long positions. Meanwhile, $2.55 is an over-leveraged level where traders have built $8.50 million worth of short positions.