thecryptobasic.com
$XRP has entered another important phase after its August rally, with the weekly chart now indicating a possible cup-and-handle breakout.
The structure suggests that the recent decline may represent a retest of this breakout. If $XRP holds key support and eventually clears the handle, the chart projects several upside targets, including $3.6330, $6.8899, and $13.5687.
$XRP currently trades around $1.39, up roughly 3.5% over the past week. The structure begins with $XRP’s decline from its July 2025 cycle high near $3.65 to about $0.99 in mid-August 2026, representing a drawdown of almost 73%.
The August low then triggered an impressive recovery, with $XRP gaining more than 60% within a few days and reaching an interim high near $1.70.
The rebound followed several positive developments, such as expected higher liquidity injection, renewed optimism surrounding the CLARITY Act, whale accumulation, and continued spot $XRP ETF inflows. However, the rally could not hold its gains for long.
August Crash Leaves $XRP in a Handle
On Aug. 22, $XRP experienced a flash crash that pushed the token down more than 37% intraday. The move triggered roughly $500 million in leveraged long liquidations before $XRP found some stability. Since then, the token has spent the first week of September moving within a tighter range between $1.30 and $1.50.
The current range gives the chart a structure that could develop into the handle portion of a larger cup-and-handle formation.
Within this structure, $XRP faces resistance around $1.45-$1.50, while buyers have stronger support near $1.35, followed by the $1.30-$1.31 area. As long as $XRP maintains these levels, the bullish structure remains intact.
On the weekly chart, $XRP’s recent price action also forms a descending wedge, with two converging trendlines containing the August rally and subsequent decline. The current consolidation near $1.30-$1.40 could represent the handle before $XRP attempts to reclaim the resistance shelf above it.
Fibonacci Levels Point Toward $13
The Fibonacci extension from the previous price swing provides a series of potential upside objectives. The first target sits at $2.4062, followed by $3.6330, $6.8899, and finally $13.5687. Among these levels, $3.6330 is important because it matches $XRP’s July 2025 cycle high near $3.65.
This makes the level a crucial test if $XRP completes the cup-and-handle breakout. A successful move beyond that area could then shift attention toward the higher $6.8899 and $13.5687 Fibonacci extensions.
The $13 target, however, requires much stronger momentum than the initial breakout. From the current $1.39 price, reaching $13.5687 would require a rally of more than 800%.
$XRP Must Hold $1.35
Several factors continue to support the bullish interpretation. First, $XRP has remained above its 20-week EMA, a level it failed to reclaim in May before falling toward $0.98. Meanwhile, a potential golden cross could develop, which would add support to the longer-term bullish case.
However, momentum has already cooled. Weekly RSI has fallen to around 58 after previously reaching overbought territory, while trading volume has declined since early September. These conditions mean $XRP needs renewed buying pressure to push through the $1.45-$1.50 resistance zone and confirm the handle breakout.
For now, $1.35 remains a key 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 put the cup-and-handle thesis under serious pressure before $XRP could reach the $2.4062 or $3.6330 targets.