**Thom Sieloff Highlights XRP’s Cup and Handle Pattern on Daily Chart**
Thom Sieloff, a well-respected analyst, has identified that XRP has developed a cup and handle pattern on the daily timeframe. He shared this insight in one of his recent analyses as the price continues to stabilize around crucial levels. To provide some background, since its decline from the $2.83 peak on February 15, XRP has been grappling with bearish pressure between $2.4 and $2.7, striving for a breakout while holding onto significant support. The 1D chart data indicates that this consolidation phase is part of a larger market structure. This brief structure began when XRP fell from its previous highs above $3, as bearish forces regained dominance at the beginning of February.
**XRP’s Journey to Forming the Cup and Handle Pattern**
Specifically, XRP experienced a drop from approximately $3.21 on January 28, continuing its descent until it reached a low of $2.26 on February 7. From this point, the altcoin entered a consolidation phase as selling pressure eased. This range-bound period persisted until a recovery began on February 12, propelling XRP to the $2.83 high on February 15. Notably, the price movements from January 28 to February 15, characterized by a gradual decline, a consolidation phase, and a subsequent recovery, led to the formation of a cup pattern. This initial pattern suggests that the market is on the brink of establishing a cup and handle structure. As anticipated, the broader structure has started to take shape over the past few days. Following the recent pullback from $2.83 and the subsequent consolidation between $2.4 and $2.7, XRP has formed the handle portion of the cup and handle pattern.
After highlighting this structure, Sieloff engaged his audience by asking for their thoughts on where the price might head from this point. For those unfamiliar, a cup and handle pattern is generally a bullish continuation pattern that features a larger rounded cup and a smaller, often sloping, handle.
**XRP Sets Its Sights on $3.36 as Breakout Target**
Importantly, the handle typically signifies a brief period of consolidation before a breakout occurs. However, this breakout only happens once the price surpasses the resistance of the handle. In this scenario, the handle’s resistance could be around the critical $2.7 mark. Should this breakout take place, it remains uncertain how high XRP could climb. In a follow-up discussion, Sieloff posed the question to xAI’s chatbot Grok. According to Grok, assets often experience rallies of 20 to 30% from the breakout point of a cup and handle structure.
Referencing this data, the AI chatbot estimated that XRP could surge by 25.37% from the proposed breakout point at $2.68, potentially reaching a price of $3.36. The last time XRP approached the $3.36 level was on January 20, but it encountered significant resistance then. A strong push could help maintain this price level this time around. Currently, XRP is trading at $2.56, having experienced a notable drop of 4.41% on Friday, February 21. A recovery push is anticipated.
