XRP continues to defend its weekly support, looking to engineer a rally toward $1.33 upon the formation of a reliable cup and handle pattern.
The crypto market has not followed a decisive trend over the past few days, with prices largely trading within a range. This consolidation has reverberated across the entire market, impacting XRP’s potential to breach the $0.5 territory.
XRP Defends Weekly Support Despite Downtrend
Amid the ongoing market uncertainty, XRP closed May below the pivotal 50-day exponential moving average (EMA) and has since remained underneath this pivotal level. Despite the downtrend, market analyst Cryptoes recently confirmed that XRP has continued to defend its support on the weekly timeframe.
#XRP Respecting weekly support | Looking SOLID⌛️
Big move up soon! $XRP 📈 pic.twitter.com/HU7ohbMKDE
— Cryptoes (@cryptoes_ta) June 3, 2024
Data from Cryptoes’ chart shows that the downward pressure pushed XRP below a crucial upper trendline in early April when it collapsed 15% within seven days to $0.5037. Despite recovering from the $0.50 region, XRP has failed to reclaim the $0.60 territory. This has resulted in an inability to again break above the upper trendline.
Nonetheless, the bulls have fiercely defended any drops below the significant weekly support at the lower spectrum of the $0.5 zone. Cryptoes suggests that XRP maintains a solid position on the weekly chart despite the market volatility, projecting a big move upward to occur soon.
A Potential Spike to $1.33
Another market watcher Dark Defender further confirms the bullish structure on XRP’s weekly chart. According to him, the Fisher Indicator suggests that XRP has slipped into oversold territories. The Fisher Indicator converts price movements into a normal distribution, highlighting extreme levels to help identify potential turning points in the market.
Hi all, we closed the May Candle and discussed Elliott Wave targets.
XRP on the Weekly Candles formed Cup-Handle Pattern, targetting $1.33 with a 76.85% increase.
Fisher Indicator says XRP is oversold. pic.twitter.com/TfHzYi60k7
— Dark Defender (@DefendDark) June 1, 2024
Interestingly, the oversold signal from the Fisher Indicator is only one of multiple pointers fueling Dark Defender’s optimism. He further revealed that XRP has formed a cup and handle structure on the weekly timeframe. A cup and handle pattern signifies a potential bullish breakout, indicating a possible continuation of an upward trend after a period of consolidation.
Dark Defender expects XRP to eventually push above its previous highs below $1. The analyst believes a spike to $1.33 could materialize once XRP secures a breakout above the handle. Notably, the last time XRP saw the $1.33 price level was during the previous bull run in November 2021.
Data from Dark Defender’s chart indicates that XRP’s breakout could push it to the November 2023 highs at $0.7476. From this level, he projects a possible 77% spike to the $1.33 price. Meanwhile, XRP currently trades for $0.5253, up 2.20% on the current weekly candle. Its RSI currently sits at 46, suggesting room for expansion.
