XRP Forms Cup-and-Handle Handle, Key Support at $1.35 Could Unlock Upside Targets

XRP has entered a critical consolidation phase following its strong August rally, with the weekly chart suggesting a potential cup-and-handle breakout may be forming.

The current price structure indicates that the recent pullback could represent a retest of this breakout formation. If XRP maintains key support levels and successfully clears the handle portion of the pattern, technical analysts project several significant upside targets, including $3.6330, $6.8899, and $13.5687.

At present, XRP is trading around $1.39, reflecting approximately a 3.5% gain over the past week. The formation began when XRP declined from its July 2025 cycle high near $3.65 down to approximately $0.99 in mid-August 2026, representing a substantial drawdown of nearly 73%.

The August low subsequently triggered a remarkable recovery, with XRP surging more than 60% within just a few days and reaching an interim high near $1.70. This rebound was fueled by several positive catalysts, including anticipated increased liquidity injections, renewed optimism surrounding the CLARITY Act, significant whale accumulation activity, and continued inflows into spot XRP ETFs. However, the rally ultimately failed to sustain its upward momentum.

August Volatility Creates Handle Formation

On August 22nd, XRP experienced a dramatic flash crash that saw the token plunge over 37% during intraday trading. This sharp decline triggered approximately $500 million in leveraged long liquidations before XRP eventually found stability. Since that event, the cryptocurrency has been consolidating within a tighter trading range between $1.30 and $1.50 throughout the first week of September.

This current consolidation pattern gives the chart structure that could potentially develop into the handle portion of a larger cup-and-handle formation. Within this framework, XRP is currently facing resistance around $1.45-$1.50, while buyers have established stronger support near $1.35, followed by additional support in the $1.30-$1.31 range. As long as XRP maintains these crucial support levels, the overall bullish structure remains technically intact.

Additionally, on the weekly chart, XRP’s recent price action has formed a descending wedge pattern, characterized by two converging trendlines that have contained both the August rally and subsequent decline. The current consolidation near the $1.30-$1.40 range could represent the handle phase before XRP attempts to reclaim the resistance level above it.

Fibonacci Projections Suggest Path to $13

The Fibonacci extension analysis from the previous price swing provides a series of potential upside objectives for XRP. The initial target sits at $2.4062, followed by $3.6330, $6.8899, and ultimately $13.5687. Among these projected levels, the $3.6330 target holds particular significance as it closely aligns with XRP’s July 2025 cycle high near $3.65.

This makes it a crucial test point if XRP successfully completes the cup-and-handle breakout pattern. A decisive move beyond that resistance area could then shift market attention toward the higher Fibonacci extension levels at $6.8899 and eventually $13.5687.

The $13.5687 target, however, would require considerably stronger momentum than what’s typically seen during an initial breakout. From the current $1.39 price point, achieving this target would necessitate a rally exceeding 800%.

$1.35 Support Level Critical for Bullish Thesis

Several fundamental and technical factors continue to support the bullish interpretation of XRP’s current chart pattern. First, XRP has managed to remain above its 20-week exponential moving average, a level it previously failed to reclaim in May before declining toward $0.98. Additionally, there’s potential for a golden cross formation to develop, which would provide further support to the longer-term bullish outlook.

Nevertheless, momentum indicators have already begun to cool. The weekly Relative Strength Index (RSI) has declined to approximately 58 after previously entering overbought territory, while trading volume has also decreased since early September. These market conditions indicate that XRP requires renewed buying pressure to push through the $1.45-$1.50 resistance zone and confirm the handle portion of the cup-and-handle breakout.

For the time being, $1.35 remains a pivotal level for maintaining the bullish setup. A daily and weekly close below this support would weaken the overall structure, while a break beneath the $1.30 level could expose the next support area around $1.23. Such a development would place significant pressure on the cup-and-handle thesis before XRP could realistically target the $2.4062 or $3.6330 price objectives.

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