XRP rejects at $060 but cup-with-handle pattern hints at upcoming rally

Recently, XRP faced rejection at $0.60, but the cup-handle pattern on the 4-hour chart suggests a possible rise to $0.70.
Over the weekend, XRP briefly recovered to $0.60 levels for the first time in September. During this rise, it reached a one-month high of $0.6129 on Saturday.
However, the coin soon entered a correction phase, retracing from these gains. As of now, XRP is hovering around $0.59 and is trading just below the psychological $0.60 barrier. This resistance area has proven to be a major hurdle for XRP.
XRP breaks out of cup-with-handle pattern
In the latest development, market analyst Steph noted in a YouTube analysis that XRP broke above the neckline of a classic cup-and-handle pattern on the 4-hour chart during its weekend rally. Chart data shows that XRP has been struggling to break above this level since September 15.
Interestingly, the current price action shows a retest of this breakout level. If XRP can maintain a four-hour close within the $0.59-0.60 range, it will confirm the continuation of the bull trend. However, failure to hold this support could result in further downside.
Steph believes that this pattern suggests a target price of $0.69-0.70, which would represent a gain of 17.7% relative to current prices. This value would represent a 6-month high for XRP. However, the analyst warned against complacency as volatility and a liquidity trap could occur in the short term.
XRP’s resistance levels and liquidity risks
According to Steph, XRP must first break above the $0.64-0.65 area, which aligns with the 0.786 Fibonacci level. This level has triggered rejection points before, notably in April and August of this year.
If XRP manages to break out of this area, the next important target would be $0.70, completing a suggestive breakout of the cup-with-handle pattern.
However, Steph warned that liquidity risks could affect market movements. XRP’s liquidation heat map shows a large short position worth over $52 million in the $0.66 area. If these shorts are triggered, prices could surge higher, chasing liquidity.
Lawyer Morgan's take on XRP's fight
Meanwhile, legal expert Bill Morgan discussed XRP’s ongoing struggle with the $0.60 resistance level. He noted that XRP’s inability to sustain its recent breakout could result in a drop below the 20-day exponential moving average.
Citing analysis from Investing.com, Morgan explained that the $0.60 level has historically been a strong resistance point and failure to sustainably break above it could lead to further consolidation.
While long-term XRP supporters continue to look forward to all-time highs, Morgan advises investors to remain cautious. According to him, unless XRP can definitively break above $0.60 and hold, any immediate price surge will likely be short-lived.
Additionally, data from CryptoQuant shows that XRP reserves on Binance have been increasing since September 11. Notably, over the past 12 days, this number has increased from 2.941 billion to 2.983 billion tokens. However, the market observed a slight decline yesterday.