XRP's Cup and Handle Pattern Signals Potential Rally to $27, According to Technical Analysis

Technical analyst ChartNerd has released a comprehensive analysis of XRP’s long-term trajectory, highlighting a significant cup and handle pattern on the weekly XRP/USD chart that could be setting up for a major breakout. The pattern reveals confluence between Fibonacci extensions and Elliott Wave structures, suggesting multiple price targets on the horizon.

The Foundation: Cup and Handle Pattern Takes Shape

The cup and handle pattern on XRP’s chart spans an extended timeframe, with the cup portion completing at the cryptocurrency’s all-time high in July 2025. What followed was a methodical handle formation—a controlled consolidation that carried through the rest of 2025. This extended sideways movement served a dual purpose: it refined the technical setup while aligning with corrective wave behavior in Elliott Wave analysis.

During the handle phase, XRP respected several key Fibonacci retracement levels, dipping into the 61.80% and 78.60% zones. Notably, the 88.70% retracement near $1.84 established itself as a critical invalidation level. Despite multiple touches at this level, XRP demonstrated strength by recovering quickly and maintaining the handle structure intact.

From Cup and Handle to Wave 3: The Breakout Scenario

With the cup and handle pattern nearing completion, ChartNerd’s analysis emphasizes that a confirmed breakout above the handle would signal the transition from Elliott Wave 2 (the correction phase) into Wave 3—historically the most powerful impulse in Elliott Wave theory.

The projected Wave 3 targets utilize Fibonacci extensions from the prior bullish advance. The first major extension point sits at 161.80%, placing potential resistance near $5.59. Higher price zones emerge at the 261.80% extension level, clustering around $7.17 and $13.45. The chart reveals minimal resistance between the breakout zone and these targets, suggesting that if momentum takes hold, XRP could stage a sharp expansion move through these levels with limited pullbacks.

Wave 4 Consolidation and Wave 5’s Grand Target

Following a successful Wave 3 advance, Elliott Wave theory suggests Wave 4 would serve as a consolidation zone, with potential support-resistance levels marked around $4.15 and $6.14. This range indicates volatility without structural weakness.

The analysis then projects into Wave 5, where Fibonacci extensions between 161.80% and 261.80% place final targets in a $19 to $28 range. The upper boundary of this projection aligns with the $27 macro target highlighted in ChartNerd’s analysis—a level that represents a substantial move from current consolidation zones.

The Technical Outlook

The cup and handle pattern combined with Elliott Wave structure presents a multi-phase upside scenario. The absence of major resistance zones between the current breakout area and Wave 3 targets reinforces the potential for an expansive move. Should the technical setup play out as projected, XRP could experience significant appreciation through Wave 3 and beyond, ultimately targeting the $27 level over an extended timeframe as part of Wave 5’s completion.