XRP's price rally faces a critical juncture at the $3.65 resistance level, but technical analysis indicates the cryptocurrency's upward momentum may persist despite recent rejections at this key threshold. The formation of a Cup and Saucer pattern on XRP's price chart suggests the current slowdown represents a consolidation phase rather than the end of the rally that previously lifted the token above $3.60 earlier this year.
What to Know:
- XRP has been rejected twice at the $3.65 level but continues forming higher lows in a bullish Cup and Saucer pattern
- Recent SEC approval of Bitwise 10 Crypto Index Fund including XRP, though later stayed, and first XRP ETF approval boost institutional interest
- Technical analysts expect a break above $3.65 resistance could propel XRP toward new all-time highs above $3.80
Technical Formation Indicates Continued Strength
Crypto analyst Cryptinsightuk identified the Cup and Saucer pattern formation on XRP's price chart following the double rejection from $3.65. This technical setup typically signals sustained bullish momentum despite temporary resistance encounters. The pattern remains incomplete, suggesting additional upward movement may occur before any significant price decline materializes.
The analyst emphasized that XRP continues establishing higher lows throughout this consolidation period. This price action demonstrates underlying strength even as the cryptocurrency encounters resistance at current levels. The formation occurring above previous range highs indicates a continuation pattern rather than a reversal signal, according to the technical assessment.
Market observers note the Cup and Saucer pattern's positioning above prior resistance zones strengthens the bullish case. Technical analysis suggests this setup increases the probability of an eventual breakout rather than a breakdown in price action.
Resistance Break Could Target New Highs
Should the Cup and Saucer pattern develop as anticipated, XRP's next objective involves retesting and breaking through the $3.65 resistance barrier. A successful breach of this level would likely trigger renewed rally momentum targeting the cryptocurrency's all-time high territory above $3.80.
The current consolidation phase appears to be building the foundation for this potential breakout. Chart analysis indicates sufficient bullish momentum remains to challenge the resistance level again, with higher probability of success given the technical setup.
Regulatory Developments Provide Additional Support
Beyond technical indicators, regulatory developments have bolstered XRP's market position this week. The SEC initially approved the Bitwise 10 Crypto Index Fund, which includes XRP among its cryptocurrency holdings, though the decision was subsequently stayed pending review.
This development followed last week's approval of the first XRP exchange-traded fund, marking a significant milestone for institutional access to the cryptocurrency. The ETF approval opens new investment channels for traditional financial institutions and retail investors seeking regulated exposure to XRP.
Grayscale has also submitted an application to convert its Digital Large Cap Fund, which includes XRP, into an ETF structure.
The fund company awaits SEC approval for this conversion, potentially expanding institutional investment options further.
These regulatory advances occur alongside technical signals pointing toward continued price strength. The combination of favorable chart patterns and expanding institutional access creates multiple catalysts supporting XRP's upward trajectory.
Final Thoughts
The convergence of technical and fundamental factors suggests XRP's rally may have additional room to run despite current resistance challenges. The Cup and Saucer pattern formation, combined with growing institutional interest through ETF approvals, provides a foundation for potential price advancement beyond current levels.
However, the $3.65 resistance level remains the critical hurdle for confirming the continuation of XRP's upward trend toward new all-time highs above $3.80.