XRP’s technical and on-chain signals suggest a significant bullish breakout. Analyst Milkybull shared a chart on Tuesday identifying an XRP cup-and-handle pattern. This classic formation aims for a $5 target by the end of 2025.
The “cup-and-handle” is a classic, widely-watched bullish setup. It often forms during major market bottoms, signaling a reversal. In technical analysis, the “cup” represents an accumulation period following a deep correction. During this phase, traders gradually buy the asset, creating a rounded base. Subsequently, the “handle” appears as a short-term pullback or consolidation. A decisive breakout above the handle’s upper trendline signals the start of a strong uptrend. Applying these parameters to the current structure, the potential upside target sits at $5. This represents an increase of 103% from current levels.
This $5 projection for XRP is gaining traction amid growing optimism. The optimism centers around spot XRP exchange-traded funds (ETFs). This positive sentiment coincides with the U.S. Senate agreement to end the recent government shutdown. This resolution, expected to restore Treasury liquidity, has injected a wave of confidence across risk markets. In fact, the DTCC website lists 11 XRP ETF products in its active and pre-launch categories. The list includes major issuers like 21Shares, ProShares, Bitwise, and Franklin Templeton.
Is on-chain data confirming the imminent surge?
Furthermore, XRP’s on-chain data is flashing another key bullish signal. The 90-day Spot Taker Cumulative Volume Delta (CVD) has flipped from neutral to dominant on the buy-side. This is occurring for the first time since June, according to data analyzed by CryptoQuant. This shift is significant, as it indicates more traders are buying XRP at the market price. They are not waiting for cheaper bids, demonstrating growing confidence and stronger demand for the cryptocurrency.
The last time this on-chain metric turned green, the price of XRP surged by 75% within weeks. This historical precedent reinforces the aforementioned technical setup. If both technical and on-chain factors align, the XRP cup-and-handle pattern could be validated. This confluence of signals suggests the asset is building the necessary pressure to push towards its bullish targets of $5 in the medium term.
