Cup-and-Handle Pattern Suggests Potential XRP Price Rally
XRP's price may reach $5 by year's end, according to a "mega breakout" setup identified by one chart analyst. This projection is based on a classic bullish technical pattern known as the cup-and-handle.
Analyst Milkybull shared a chart illustrating this pattern, which often forms during significant market bottoms. In technical analysis, the "cup" phase represents a period of accumulation following a substantial correction, where traders gradually acquire the asset, creating a rounded base.
Following the cup, a "handle" typically appears as a short-term pullback. This phase usually concludes when buyers regain control of the market. A decisive breakout above the handle's upper trendline is often interpreted as the commencement of a strong uptrend.
The potential price target for such a breakout is generally estimated to be equivalent to the depth of the cup pattern. Applying these technical parameters to XRP's current chart structure suggests a potential upside target of approximately $5. This figure represents an increase of about 103% from current levels and could be achieved by the end of 2025.
ETF Optimism Bolsters the Bullish Outlook for XRP
The projection of XRP reaching $5 is occurring amid a surge in optimism surrounding spot XRP exchange-traded funds (ETFs). This optimism has been amplified by a significant development in the US government, with a breakthrough deal reached to end a prolonged government shutdown.
The resolution of the shutdown is anticipated to restore normal government operations and release Treasury liquidity, injecting a wave of confidence into risk markets, including cryptocurrencies like XRP.
As of this week, the Depository Trust & Clearing Corporation (DTCC) website lists 11 XRP ETF products. These products are categorized as either active or in the pre-launch phase and include offerings from major issuers such as 21Shares, ProShares, Bitwise, Canary Capital, CoinShares, and Franklin Templeton.
Market analysts, including Nate Geraci and Eric Balchunas, have suggested that the end of the government shutdown could effectively "open the ETF floodgates," potentially paving the way for the first spot XRP products to be launched on US markets.
On-Chain Data Mirrors Previous Rally Setup
XRP's on-chain data is also presenting a bullish signal, mirroring patterns observed during a previous significant price surge.
The 90-day Spot Taker Cumulative Volume Delta (CVD) metric, which tracks whether market orders are predominantly driven by buyers or sellers, has shifted from a neutral state to Taker Buy Dominant. This is the first time this indicator has shown this trend since June, according to data from CryptoQuant.
This shift indicates that an increasing number of traders are executing buy orders at the current market price, rather than placing limit orders at lower prices. This behavior suggests growing confidence and strengthening demand for XRP.
Notably, the last time this specific signal turned positive, in mid-2025, XRP's price experienced a surge of approximately 75% within a matter of weeks. This historical correlation further supports the bullish technical setup and the potential for XRP to reach the $5 price target by the end of the year.