XRP's Cup and Handle Pattern May Unlock Path to $27, According to Elliott Wave Analysis

Technical analysis on the XRP/USD weekly chart reveals a compelling long-term setup combining classical chart patterns with Elliott Wave theory. A prominent cup and handle formation has emerged across an extended timeframe, with implications that could push XRP significantly higher.

The Cup and Handle Foundation

The pattern structure took shape over multiple market cycles. XRP reached an all-time high in July 2025, completing the cup portion of this formation. The subsequent decline through the remainder of 2025 created the handle—a controlled pullback that set up the potential for a breakout. This extended consolidation phase aligns with corrective wave mechanics, specifically Wave 2 in Elliott Wave analysis.

During the handle phase, XRP respected critical Fibonacci retracement levels, including the 61.80% and 78.60% zones. A notable 88.70% retracement near $1.84 serves as a key support level. Multiple tests of this level demonstrated buying interest, with XRP recovering each time and maintaining its handle pattern structure.

Breaking Into Wave 3 Territory

Elliott Wave theory suggests XRP completed a macro Wave 1 advance before entering the current Wave 2 correction. The handle formation coincides with this corrective phase, and a confirmed breakout would signal the transition into Wave 3—historically the strongest impulse move.

Fibonacci extensions project Wave 3 targets at multiple levels. The 161.80% extension places a first-tier target near $5.59. More ambitious projections cluster around $7.17 and $13.45, derived from 261.80% extensions. These levels represent where Wave 3 could consolidate before continuing higher. Analysis suggests minimal resistance between current levels and these targets, potentially allowing for sharp acceleration during Wave 3 expansion.

The Road to $27 and Beyond

Wave 5 extends projections even further, with Fibonacci calculations between 161.80% and 261.80% extensions pointing to a range between $19 and $28. This $27 target represents the upper boundary of macro objectives derived from the extended Fibonacci sequence.

Wave 4 is anticipated to function as a consolidation zone separating Wave 3 from Wave 5, with potential retracement support levels near $4.15 and $6.14. This range suggests moderate volatility may occur, but it would represent healthy consolidation rather than structural breakdown if XRP reaches these levels during the progression toward Wave 5 targets.

The technical framework indicates that a confirmed breakout from the handle pattern could initiate a multi-phase advance. The alignment of classical chart pattern completion with Elliott Wave mechanics suggests confluence points that historically precede significant moves.