XRP price retreated for the third consecutive day, approaching a local bear market as the crypto market sell-off intensified.
Summary
- XRP price has dropped in the last three consecutive days.
- The crash is part of the formation of the cup-and-handle pattern.
- XRP has numerous catalysts, including rising ETF approval odds.
Ripple (XRP) dropped and retested the important support level at $3, its lowest level in nearly a week. It has dropped by over 17% from the highest point this year.
XRP price is forming a cup-and-handle pattern
The ongoing XRP price crash is part of the formation of the rare cup-and-handle pattern, a rare continuation sign. This pattern consists of two parts.
It has already completed forming the cup section, which happened between January and July 18. The lower part of the cup was at $1.6238, its lowest level in April.
XRP is falling now as part of the formation of the handle section. In most cases, the handle is usually a downward-sloping or sideways price movement. It can take a few days or weeks to form and complete.
The profit section of the C&H pattern is estimated by first measuring the cup’s depth, and then adding the result to the head of the cup. In this case, the depth is $1.7625.
Adding this to the top of the cup at $3.3863 gives the price target at $5.1488, which is about 70% above the current level.
Ripple has potential catalysts
XRP price has numerous catalysts that may help to drive the surge. The most notable one is that Polymarket odds of spot XRP ETF approvals in 2025 has jumped to over 80%.
There is also a likelihood that BlackRock will file for an XRP ETF after its success with Bitcoin (BTC) and Ethereum (ETH) ETFs. IBIT’s assets have ballooned to over $86 billion and is now its most profitable funds. Similarly, ETHA, its Ethereum fund, has crossed the $10 billion milestone.
The existing derivatives-based XRP ETFs have also had substantial inflows this year. The recently-launched Ultra XRP ETF has gained $100 million in assets within a week, while the Teucrium XXRP fund has over $430 million in assets.
XRP is also a major beneficiary of the recently passed GENIUS Act, which is now regulating stablecoins in the US. Ripple USD, its stablecoin, has now accumulated over $550 million in assets and is one of the fastest-growing assets in the industry.
Ripple Labs has also accelerated its partnerships after the end of the SEC lawsuit. It recently partnered with Ctrl Alt and the Dubai Land Department, Bank of New York Mellon, and OpenPayd.
Credit: Source link
