Renowned cryptocurrency analyst Dark Defender (@DefendDark) has highlighted a notable cup and handle pattern emerging on the daily chart of XRP, setting short-term targets as high as $1.88.
The cup and handle pattern, a technical analysis formation in financial charts, signifies a bullish trend reversal. It involves a rounded bottom (cup) followed by a consolidation period (handle), suggesting potential upward price movement with a breakout typically occurring at the handle’s resistance level.
Hi all. $XRP formed a cup & handle pattern in the daily time frame.
We set targets for $1.05 & $1.88 with the Elliott Waves, and now the Cup-Handle pattern is also blinking XRP to reach the targets.
Can the handle be extended towards $0.5286 Support?
We still need to close… pic.twitter.com/SvVokOYTs8
— Dark Defender (@DefendDark) November 21, 2023
The cup formation was initiated following Judge Torres’s July ruling in the U.S. Securities and Exchange Commission’s lawsuit against Ripple. This ruling was a significant victory for Ripple and the XRP community, as non-institutional sales of XRP were deemed non-security offerings.
Despite a correction in September that saw XRP drop to a low of $0.4580, bulls resiliently defended this support level. In early November, XRP surged, completing the second section of the cup. The handle has been forming since November, with Dark Defender acknowledging the potential for a breakdown below the current support of $0.6044, possibly extending to the next support at $0.5286. However, he stresses that such an outcome would not be ideal for XRP’s trajectory. To maintain upward momentum, the asset needs two more intraday closes above the $0.6044 support.
Dark Defender maintains confidence in XRP’s bullish
Despite this minor concern, Dark Defender maintains confidence in XRP’s bullish prospects, setting short-term price targets of $1.05 and $1.88. These targets could be achieved if XRP surpasses resistance levels at $0.6649, $0.7312, and $0.7721.
As of the latest update, XRP is trading at $0.6132, reflecting a 2.94% increase in the last 24 hours. Achieving the $1.88 target would require a 206% increase. The cup and handle pattern, combined with Dark Defender’s analysis, presents a positive outlook for XRP in the short term. Investors are advised to closely monitor XRP’s price action and await confirmation of a breakout above the $0.6044 support level to validate the potential rally.
While there is scepticism from some community members regarding Dark Defender’s analysis, he has garnered favourable responses, particularly from XRP enthusiasts anticipating a move to $1.88. Notably, Dark Defender previously predicted a move to $5.85 for XRP, suggesting that $1.88 might not be the endpoint.