Imminent Rally Implied by Cup and Handle Formation as XRP Faces Rejection at 060

XRP recently faced a notable rejection at the $0.60 mark, preventing it from maintaining its upward momentum. Despite this setback, the presence of a bullish Cup and Handle formation on the 4-hour chart indicates that XRP could be on the verge of a rally toward the $0.70 level. So, what are the prospects for XRP’s price action as it faces this critical resistance?
XRP’s Recent Surge and Rejection at $0.60
Over the weekend, XRP briefly surged past $0.60, hitting a one-month high of $0.6129—its highest level in September. This milestone marked a promising turn for the cryptocurrency, which had been struggling to regain its previous highs. However, the rally was short-lived, as XRP soon entered a correction phase, retreating to around $0.59, where it currently hovers.
The $0.60 psychological resistance has proven to be a significant barrier for XRP, as the token faces mounting pressure to break through this level. The ongoing struggle at this price point has left many traders and investors wondering whether XRP can muster the strength for a sustained breakout.
Cup and Handle Formation Points to Bullish Upside
Despite the rejection at $0.60, market analysts are optimistic about XRP’s short-term outlook due to the emergence of a Cup and Handle pattern on the 4-hour chart. According to analyst Steph, who highlighted the pattern in a recent YouTube analysis, XRP broke above the neckline of this bullish formation during its weekend rally. The breakout marked a key technical milestone, signaling the potential for further upside if XRP can maintain its position above the $0.59–$0.60 range.
The Cup and Handle is a well-known chart pattern that often precedes significant price moves. If XRP can confirm this breakout with sustained closes above the $0.60 level, the next major resistance target would be between $0.69 and $0.70, representing a potential 17.7% gain from the current price. A move to this level would also mark XRP’s highest price in over six months.
XRP Resistance Levels and Liquidity Risks
While the Cup and Handle pattern suggests a bullish breakout, XRP still faces several key resistance levels before it can reach $0.70. The most immediate hurdle lies in the $0.64–$0.65 zone, which aligns with the 0.786 Fibonacci retracement level. Historically, this zone has triggered multiple rejections, notably in April and August of this year.
If XRP manages to break above this critical resistance, the Cup and Handle pattern’s implied target of $0.70 could be achieved. However, Steph cautions traders to remain vigilant of liquidity risks. According to XRP’s liquidation heat map, there is a significant accumulation of short positions around the $0.66 mark, totaling over $52 million in liquidity. Should these shorts get triggered, it could lead to a rapid price surge as the market chases liquidity.
Legal Expert’s Take on XRP’s Struggle
The legal landscape surrounding XRP continues to influence market sentiment. Bill Morgan, a legal expert closely following XRP’s regulatory developments, recently discussed the token’s ongoing battle with the $0.60 resistance. According to Morgan, XRP’s failure to sustain its breakout above $0.60 could indicate the potential for further downside, particularly if the price falls below the 20-day Exponential Moving Average (EMA).
Morgan emphasizes that XRP’s inability to decisively break above $0.60 has historically led to extended periods of consolidation. He urges caution, noting that while long-term XRP supporters may be anticipating all-time highs, short-term volatility and resistance at $0.60 could limit any immediate price spikes.
XRP Supply and Market Activity
Amid the recent price action, on-chain data from Crypto Quant has revealed interesting trends regarding XRP’s supply on exchanges. Since September 11, XRP reserves on Binance have steadily increased, rising from 2.941 billion tokens to 2.983 billion tokens over the past two weeks. This increase suggests that traders may be positioning themselves for future market moves, although a slight decrease in reserves was observed yesterday.
The increase in XRP reserves on Binance could signal potential selling pressure as more tokens become available on the market. However, it may also indicate that traders are accumulating XRP in anticipation of a breakout, further adding to the overall uncertainty surrounding the token’s short-term trajectory.
Conclusion: Will XRP Break Through $0.60 and Rally to $0.70?
XRP’s recent rejection at $0.60 highlights the significant challenges the token faces in breaking through key resistance levels. However, the emergence of a bullish Cup and Handle formation suggests that XRP may be on the verge of a rally, potentially reaching the $0.70 mark if it can overcome critical resistance points at $0.64 and $0.65.
Traders should keep a close eye on XRP’s price action over the coming days, particularly whether it can hold above the $0.59–$0.60 range on the 4-hour chart. If XRP succeeds in breaking through these levels and sustaining its momentum, the token could soon be trading at its highest levels in months. However, as with any cryptocurrency, volatility and liquidity risks remain, and investors should exercise caution in navigating the market.
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