XRP price prediction: Breakout above $2.65 puts bulls on path to $3.40
XRP tests support after cup and handle breakout above $2.65 neckline
XRP price breaks past the $2.65 neckline of a multi-month cup and handle pattern on Monday, marking a major structural breakout supported by strong technical momentum. The move has propelled XRP into overbought territory, with the daily RSI now at 77.56, suggesting a temporary pause may be near.
Highlights
- XRP breaks above $2.65 neckline of cup and handle structure with RSI nearing 78
- Derivatives show mixed signals, with declining options volume but rising open interest
- On-chain outflows near $50M suggest short-term profit taking amid extended rally
However, trend confirmation remains intact, supported by a bullish alignment across all major EMAs. As long as the asset holds above the $2.75–$2.80 zone, the bullish trend is expected to continue, with the next resistance seen at $3.20–$3.40.
XRP price dynamics (Source: TradingView)
The price action follows weeks of consolidation and forms part of a broader recovery that started in mid-June. The breakout also validates the long-term uptrend, adding to bullish conviction across higher timeframes. Despite the overheated momentum, the 20, 50, 100, and 200-day EMAs continue to offer support, creating a strong technical base for potential continuation.
Mixed derivatives and on-chain flows suggest caution
While the spot market structure remains bullish, derivatives data presents a more nuanced picture. Open interest dipped slightly by 4.48% to $7.96 billion, even as options open interest jumped 14.27%, pointing to speculative bets on the further upside. However, the sharp 71% drop in options trading volume implies a retreat in short-term hedging activity. Long/short ratios at major exchanges favor longs, especially on Binance, where the top trader long/short ratio stands at 2.91. Positive but moderate funding rates confirm ongoing long positioning without signaling overheating.
On-chain, however, XRP recorded $49.58 million in net spot outflows on July 15, hinting at profit-taking. Historically, such outflows during periods of RSI overextension often precede short-term pullbacks or range-bound trading. That said, there is no structural breakdown yet, and the asset remains above all key support levels.
As noted in earlier analyses, the $2.60–$2.65 breakout zone held key significance. With that barrier now cleared, XRP’s long-awaited cup and handle breakout has confirmed a shift in trend structure. The pullback zone at $2.75–$2.80 will be critical. If defended, bulls may drive the next move toward $3.40 in the coming sessions.
