The price of XRP has come under significant pressure in recent days. On August 18, it fell below the key support at $3, marking a drop of more than 20% from its recent peak. Yet some analysts view the current correction as an opportunity – and even as a precursor to massive growth.
The “Cup and Handle” Formation
Well-known crypto analyst Rekt Fencer, with over 325,000 followers, highlighted the XRP chart on the daily timeframe. According to him, a classic Cup & Handle pattern has formed – one of the most reliable bullish setups.
The pattern features a rounded bottom (the cup) followed by a consolidation (the handle). If confirmed, technical analysis suggests the price could surge to as high as $6.
Other Signals Support the Bullish Outlook
In addition, the eight-hour XRP chart shows an inverted head-and-shoulders formation, with a projected target around $4.06. This technical setup indicates that despite the short-term decline, the market still holds strong bullish potential.
Whales Driving the Market
Large investors are playing a key role in the potential rally. Over the weekend, one whale purchased $61 million worth of XRP on the Upbit exchange. Whale activity has also contributed to a negative net flow on exchanges – in recent weeks, more than $40 million worth of XRP has been withdrawn from trading platforms.
Data from CoinGlass shows that since late June, spot outflows have reached nearly $1 billion. This is a strong signal that investors are moving XRP into self-custody, expecting future price appreciation.
ETF Approval and Ecosystem Growth as Catalysts
Another major factor is the anticipated approval of spot XRP ETFs. According to Ripple CEO Brad Garlinghouse, this could happen as early as October. If approved, XRP would gain massive access to U.S. investors, potentially driving substantial inflows.
Equally positive is the rapid growth of Ripple USD (RLUSD), which has now reached $666 million and is heading toward the $700 million mark. This trend increases the utility of the XRP Ledger and strengthens its role in the crypto industry.
💡 While XRP currently faces bearish pressure, technical patterns, whale accumulation, and ETF expectations create a combination that could trigger a sharp rally. For some investors, the current dip may prove to be the perfect entry point.
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