The XRP price rally has already seen it reclaim the $3.6 level once this year before slowing back down again. This slowdown has raised concerns of a possible end to the rally. But the formation of a Cup and Saucer Pattern actually tells a different story. Since this pattern is yet to be completely fulfilled, there is the possibility that the XRP price rally has only entered a possible slowdown and will continue to rise from here.
Why The XRP Price Rally Is Still In Motion
Crypto analyst Cryptinsightuk took to X (formerly Twitter) to share the formation of a Cup and Saucer pattern on the XRP price pattern. This comes after double rejection from the $3.65 level, which is now acting as the major resistance to the altcoin’s continuation of the rally. However, while this double rejection is concerning, the emergence of the Cup and Saucer pattern suggests a sustained bullish trend.
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Cryptoinsightuk explains that despite the rejections, the XRP price has continued to put in higher lows. Naturally, this is bullish for the price regardless of where the resistance lies. Going by the chart as well, it is obvious that there is still a way to go before the pattern plays out completely and suggests a decline in the price.
From here, the analyst expects that the XRP price will indeed continue to rise. One of the major reasons that this remains bullish is the fact that this formation is coming above previous range highs. Therefore, Cryptoinsightuk explains that it is more likely a continuation pattern leading to a breakout than it is to lead to a breakdown in price.
If the Cup and Saucer pattern does hold up and continue as expected, then the next target would be to retest and break the resistance that has mounted at $3.65. Once this resistance breaks, then a continuation of the rally would put XRP back on the path toward new all-time highs above $3.8.
Bullish Developments Spark Hope
Not only are the charts showing bullish momentum for the XRP price, but other market developments have also put the altcoin on a positive path. The latest of these is the SEC approval of the Bitwise 10 Crypto Index Fund earlier in the week, which includes XRP as one of the cryptocurrencies held by the fund. Although the SEC eventually stayed the decision and is now under review.
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This comes just a week after the first XRP ETF was approved for trading by the regulator last week, paving a way for more institutional investors to have access to the altcoin. Grayscale has also applied to convert its Grayscale Digital Large Cap Fund LLC, which also includes XRP, into an ETF, and is awaiting approval from the SEC as well.
Featured image from Dall.E, chart from TradingView.com
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