Technical Chart Suggests a Bullish Breakout Toward $3.40

XRP’s latest market movement has formed a classic cup-and-handle pattern on its four-hour price chart, a bullish indicator that could drive the price above $3.00. As exchange outflows increase, reducing selling pressure, traders anticipate a sustained recovery in XRP’s value.

Exchange Outflows Strengthen Bullish Sentiment

The XRP/USD pair rose 3.5% to an intraday low of $2.63 on 17 February, according to TradingView data. Over the past seven days, XRP has gained 10%, recovering from a sharp 44% decline that saw its price drop to $1.76 in early February.

Lower timeframe technical setups indicate further gains could be on the horizon, particularly as exchange flows have turned negative. XRP spot exchange flows flipped red on 16 February following three days of inflows. In theory, this trend reduces market selling pressure, allowing for price appreciation.

Data from CryptoQuant also indicates that XRP supply on exchanges has been declining since mid-November 2024. This trend coincided with a 330% price rally, suggesting that investors have held onto their assets rather than taking profits.

Cup-and-Handle Formation Targets $3.40

From a technical perspective, XRP/USD has been forming a cup-and-handle pattern on its four-hour chart since 1 February.

This formation typically consists of an initial price decline, followed by a gradual U-shaped recovery, forming the cup. The subsequent pullback inside a descending channel creates the handle. Once the price breaks out above this handle, it often rallies by an amount roughly equal to the prior decline.

Currently, XRP is trading within the handle’s range, moving toward neckline resistance at $2.75. A decisive four-hour candlestick close above this level could trigger a push toward resistance at $2.84.

Should XRP successfully break past this barrier, the pattern suggests a potential rally toward $3.40—representing a 25% gain from its current levels.

Several analysts support this outlook. Dark Defender, a crypto market observer, noted that if XRP clears the $2.77 resistance, $3 will be a realistic target.

“XRP is trying to claim the $2.7740 level. If successful, then $3 will be in play. Breaking this channel heralds two-digit levels first!” the analyst stated.

Similarly, market analyst Kwantxbt pointed to a bullish divergence in momentum indicators on the daily timeframe, suggesting that XRP could rise toward the $2.85–$3.15 range in the near term.