XRP Shows Cup and Handle Pattern Targeting $30

XRP may be developing one of the most structurally significant bullish formations on its long term chart. The XRP/USD pair on Bitstamp is forming a multi year cup and handle pattern on the monthly timeframe — a setup that, if confirmed, could imply a measured move toward the $30 region.

The formation spans multiple market cycles, beginning after the 2021 peak and extending through the prolonged correction into 2024. Such large scale structures typically reflect broad shifts in market positioning rather than short term speculation, making the current technical setup particularly notable for long term participants.

If price successfully breaks above the neckline resistance near $3.50 to $4, classical technical measurement methods project a potential upside target around $30, derived from the full depth of the cup added to the breakout level.

Pattern Structure on the Monthly Chart

The Cup Formation

The cup portion developed between the 2021 market top and the 2024 lows. During this period, XRP carved out a wide rounded base, signaling a prolonged corrective phase followed by gradual accumulation.

The rounded bottom structure suggests a transition from distribution to accumulation over several years. After establishing this base, price accelerated into early 2025, rallying toward the $3 to $4 region — a historically significant resistance zone that previously limited upside momentum.

Reclaiming this zone marked a major technical shift, bringing XRP back into a breakout testing phase rather than a recovery stage.

The Handle Formation

Following the advance into early 2025, XRP entered a controlled retracement, forming what appears to be the handle portion of the structure.

Monthly candles show cooling momentum from local highs while maintaining higher structural lows. Importantly, the pullback remains orderly rather than impulsive, supporting the interpretation of consolidation instead of distribution.

In classical technical analysis, the handle represents the final phase of compression before a potential breakout attempt.

Key Resistance and Breakout Level

The neckline of the formation sits between $3.50 and $4 — a critical macro resistance level.

A decisive monthly close above this zone would technically confirm the pattern. Using standard cup and handle measurement principles, the projected target aligns near $30, reflecting the full height of the structure added to the breakout area.

Because the formation spans several years, any breakout would likely unfold over an extended period rather than as a short term spike.

Why the Monthly Timeframe Matters

Patterns forming on the monthly chart carry more structural weight than those on daily or intraday timeframes. They capture multi year capital rotation and broader shifts in market psychology.

A confirmed breakout above the neckline with sustained volume expansion would suggest renewed long term momentum. Failure to clear resistance, however, could lead to prolonged consolidation before any major directional move develops.

Outlook for XRP

The broader structure remains technically constructive as long as XRP holds within the established formation.

A confirmed breakout above $3.50 to $4 would significantly strengthen the bullish case and increase the probability of a long term expansion toward the $30 projection. Until that confirmation occurs, price may continue consolidating within its current macro range.

The coming months will likely determine whether this multi year structure transitions into a sustained breakout phase or extends its accumulation period.

My Take

Monthly patterns unfold slowly but tend to carry substantial implications once validated. If XRP secures a decisive breakout above the neckline, the $30 target becomes technically justifiable within a long term framework.

The key variable now is whether bullish momentum can reaccelerate following the recent pullback and convert structural potential into confirmed expansion.

Source: STEPH IS CRYPTO