The XRP price surge has already seen it recover the $3.6 level once this year before decelerating again. This deceleration has raised fears of a potential conclusion to the surge. However, the formation of a Cup and Saucer Pattern suggests a different narrative. Since this pattern is yet to be entirely completed, there remains a chance that the XRP price surge has only entered a temporary slowdown and will continue to ascend from here.
Reasons Why The XRP Price Surge Remains Active
Crypto analyst Cryptinsightuk took to X (previously Twitter) to disclose the establishment of a Cup and Saucer pattern on the XRP price trend. This follows a double rejection from the $3.65 level, which now serves as a significant barrier to the altcoin’s furtherance of the rally. However, while this double rejection is worrisome, the emergence of the Cup and Saucer pattern indicates a persistent bullish trend.
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Cryptoinsightuk clarifies that despite the rejections, the XRP price has continued to achieve higher lows. Naturally, this is optimistic for the price regardless of where the resistance exists. Analyzing the chart further, it is clear that there remains a journey ahead before the pattern is fully realized, suggesting a dip in the price is not imminent.
From this juncture, the analyst anticipates that the XRP price will indeed keep ascending. One of the key reasons for this ongoing bullish sentiment is due to the fact that this formation is occurring above previous range peaks. Consequently, Cryptoinsightuk explains that it is more likely a continuation pattern leading to a breakout than a breakdown in the price.
If the Cup and Saucer pattern holds and proceeds as expected, then the next objective would be to retest and surpass the resistance positioned at $3.65. Once this resistance is breached, a continuation of the rally would set XRP back on course toward new all-time highs exceeding $3.8.
Bullish Developments Ignite Optimism
Not only are the charts exhibiting bullish momentum for the XRP price, but additional market developments have also positioned the altcoin on a favorable trajectory. The latest of these is the SEC’s endorsement of the Bitwise 10 Crypto Index Fund earlier this week, which includes XRP as one of the cryptocurrencies held within the fund. Although the SEC has since put the decision on hold and is currently under review.
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This follows just a week after the initial XRP ETF was sanctioned for trading by the regulator last week, creating pathways for more institutional investors to gain access to the altcoin. Grayscale has also submitted a request to transform its Grayscale Digital Large Cap Fund LLC, which also encompasses XRP, into an ETF and is awaiting approval from the SEC as well.
Featured image from Dall.E, chart from TradingView.com
