Despite a sharp drop below the critical $3 support level on August 18, XRP may be poised for a strong comeback. The cryptocurrency has officially entered a technical bear market after falling 20% from its year-to-date high. However, analysts believe this downturn could present a prime buying opportunity. One prominent voice in the crypto space, Rekt Fencer, has identified a “too perfect” chart pattern that could propel XRP to $6 in the near future.
Analyst Identifies Bullish Cup-and-Handle Formation
Rekt Fencer, a well-known crypto analyst with over 325,000 followers, suggests that the current pullback in XRP is likely temporary. He points to a cup-and-handle pattern forming on the daily chart, a classic bullish signal. This pattern typically features a rounded bottom followed by a brief consolidation phase. Based on technical measurements, Rekt estimates that XRP could surge to $6 once the pattern completes.
Additional Technical Patterns Support Upside Potential
Beyond the daily chart, XRP’s eight-hour chart reveals another bullish formation: an inverse head-and-shoulders pattern within the handle section of the cup. This setup includes a head, two shoulders, and a neckline. The neckline sits at $3.3787, and the head bottomed at $2.96. Using standard technical analysis, this pattern suggests a short-term target of $4.06.
Whale Activity and ETF Hopes Fuel Optimism
Large investors, or whales, are actively accumulating XRP, signaling confidence in its future performance. One whale recently purchased $61 million worth of XRP on Upbit. CoinGlass data shows consistent outflows from exchanges, with over $40 million exiting in the past two weeks alone. Since late June, nearly $1 billion in XRP has moved into self-custody, indicating long-term investor optimism.
Further bullish momentum may come from regulatory developments. Ripple CEO Brad Garlinghouse recently stated that the SEC could approve up to 10 spot XRP ETFs by October. If approved, these ETFs could attract significant inflows from U.S. investors. Additionally, the market cap of Ripple USD (RLUSD) has climbed to $666 million, nearing the $700 million mark, which enhances the utility of the XRP Ledger.
Frequently Asked Questions (FAQs)
- What caused XRP’s recent price crash?
XRP dropped below $3 due to a broader crypto market downturn, falling 20% from its yearly high.
- Why do analysts believe XRP could rebound?
Technical patterns like the cup-and-handle and inverse head-and-shoulders suggest a bullish reversal, with targets up to $6.
- How does whale activity impact XRP’s price?
Whale accumulation and exchange outflows indicate strong investor confidence, often preceding major price rallies.
