XRP Price Action Triggers Cup and Handle Setup

XRP traders are keeping a close eye on the price action of the cryptocurrency as it draws near an 8-year resistance zone. ChartNerd's analysis suggests that XRP may be forming a cup and handle structure, which could indicate that the token's long consolidation is building a larger macro structure with future Fibonacci extensions above the current range.

The chart shows that XRP has been trading under this broad resistance area for several years, creating a rounded base after its earlier peak. Inside this structure, ChartNerd marked several Gaussian channel retests, which show points where the price found support before attempting another recovery. Notably, three similar retests have appeared over the past six years inside the cup.

While XRP has pulled back from its recent high and is moving lower inside the right side of the structure, it does not cancel out the setup entirely. Instead, it keeps attention on whether the next major low forms above deeper macro support. The 0.5 Fibonacci level near $0.89 remains an important support zone, which could become crucial if XRP extends its correction before any larger breakout attempt.

According to Coinglass data, mixed short-term pressure is evident in XRP's market. The token is down 2.41% over 24 hours and 0.66% over four hours, yet it remains up 4.30% over seven days and 6.25% over 30 days. Market data shows that traders remain active despite the short-term price drop, with a long/short ratio of 3.5188 on Binance and 2.31 on OKX.