XRP's Cup and Handle Setup Suggests Major Breakout Potential Above $20

Recent technical analysis on the weekly XRP/USD chart reveals a compelling long-term structure that combines classical chart patterns with Elliott Wave methodology. A respected analyst has mapped out a scenario where XRP could advance significantly from current levels.

The Cup and Handle Pattern Takes Shape

The price action over the past 18 months showcases a textbook cup and handle configuration. XRP peaked in July 2025, marking the completion of the cup’s upper rim. The subsequent decline throughout the remainder of 2025 formed the handle segment, creating a period of consolidation and controlled selling pressure. This extended sideways movement isn’t random—it corresponds precisely with Wave 2 corrective behavior in Elliott Wave analysis. During this decline, XRP has consistently respected key Fibonacci retracement levels, particularly the 61.80% and 78.60% zones. An 88.70% retracement level sits near $1.84, functioning as a critical support threshold where invalidation could occur.

Elliott Wave Structure Points to Multi-Stage Advance

The technical setup suggests XRP has completed its Wave 2 correction and stands ready to transition into Wave 3—historically the most powerful momentum phase in Elliott Wave cycles. The wave labeling on the chart indicates Wave 1 advance has already concluded, with the handle phase representing the corrective pullback.

If a decisive breakout from the handle materializes, Wave 3 targets come into focus. Using Fibonacci extension analysis from the previous impulse move:

• The 161.80% extension projects to approximately $5.59
• The 261.80% extension reaches around $13.45
• Intermediate projections cluster in the $7.17 range

Notably, the chart indicates minimal resistance between the current consolidation zone and these wave 3 targets, suggesting potential for a sharp acceleration phase once momentum enters.

Long-Term Targets in the $19-$28 Range

Looking beyond Wave 3, Fibonacci extensions into Wave 5 paint an ambitious picture. When applying 161.80% to 261.80% extension levels from the full impulse structure, price targets cluster between $19 and $28. This upper band aligns with the macro $27 objective cited in technical discussions. Wave 4 is projected as a temporary consolidation zone (between $4.15 and $6.14) that would occur after Wave 3 completes—a normal corrective pause rather than structural weakness.

The analysis framework suggests that a confirmed breakout from the current handle pattern would initiate a multi-year advance structured across three remaining wave phases, with cumulative targets suggesting XRP could reach levels significantly above its current position.