XRP Price Analysis: Cup-and-Handle Pattern Suggests Potential Breakout Toward $3.63 and Beyond
XRP has entered a critical technical phase following its August rally, with the weekly chart now signaling a possible cup-and-handle breakout formation. The current price structure indicates the recent decline may represent a retest of this breakout level. If XRP maintains key support and eventually clears the handle resistance, technical projections point to several upside targets, including $3.6330, $6.8899, and $13.5687.
As of early September, XRP trades around $1.39, reflecting a gain of approximately 3.5% over the past week. The broader structure originates from XRP’s decline from its July 2025 cycle high near $3.65 to a low of roughly $0.99 in mid-August 2026, a drawdown of nearly 73%. That August low sparked a sharp recovery, with XRP surging more than 60% in just a few days to reach an interim high near $1.70.
Catalysts Behind the August Rebound
The rebound coincided with several positive developments: expectations of increased liquidity injections, renewed optimism surrounding the CLARITY Act, whale accumulation activity, and continued inflows into spot XRP exchange-traded funds. However, the rally proved short-lived.
August Flash Crash Forms the Handle
On August 22, XRP experienced a flash crash that erased more than 37% of its value intraday. The move triggered approximately $500 million in leveraged long liquidations before the token found stability. Since then, XRP has consolidated throughout the first week of September within a tightening range between $1.30 and $1.50.
This consolidation range gives the weekly chart a structure that could evolve into the handle portion of a larger cup-and-handle formation. Within this framework, XRP faces resistance around $1.45 to $1.50, while buyers have established stronger support near $1.35, followed by the $1.30 to $1.31 zone. As long as XRP defends these levels, the bullish structure remains valid.
Weekly Chart Also Shows Descending Wedge
On the weekly timeframe, XRP’s recent price action also forms a descending wedge, with two converging trendlines containing the August rally and subsequent pullback. The current consolidation near $1.30 to $1.40 could represent the handle before XRP attempts to reclaim the resistance shelf above it.
Fibonacci Extensions Target $3.63, $6.89, and $13.57
Fibonacci extensions drawn from the prior price swing provide a series of potential upside objectives. The first target sits at $2.4062, followed by $3.6330, $6.8899, and finally $13.5687. The $3.6330 level carries particular significance because it aligns with XRP’s July 2025 cycle high near $3.65.
This makes the $3.63 area a crucial test if XRP completes the cup-and-handle breakout. A decisive move beyond that region could then shift market focus toward the higher $6.8899 and $13.5687 Fibonacci extensions. Reaching the $13.5687 target from the current $1.39 price would require a rally of more than 800%, demanding substantially stronger momentum than the initial breakout.
Key Support at $1.35 Must Hold
Several factors continue to support the bullish interpretation. First, XRP has remained above its 20-week exponential moving average (EMA), a level it failed to reclaim in May before dropping toward $0.98. Additionally, a potential golden cross — where the 50-week moving average crosses above the 200-week moving average — could develop, adding weight to the longer-term bullish case.
However, momentum has already cooled. The weekly Relative Strength Index (RSI) has fallen to around 58 after previously reaching overbought territory, while trading volume has declined since early September. These conditions indicate XRP needs renewed buying pressure to push through the $1.45 to $1.50 resistance zone and confirm the handle breakout.
For now, $1.35 remains the pivotal level for the bullish setup. A daily and weekly close below it would weaken the structure, while a break under $1.30 could expose the next support around $1.23. Such a move would place the cup-and-handle thesis under serious pressure before XRP could reach the $2.4062 or $3.6330 targets.
