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▲ XRP
As XRP approaches the completion of a cup-and-handle pattern, whether it breaks above $1.19 has emerged as the biggest decisive factor, potentially leading to a 16% surge or a re-fall to $1.
According to cryptocurrency specialized media BeInCrypto on July 8 (local time), a cup-and-handle pattern, characterized by a rounded bottom followed by a short consolidation, is forming on XRP's daily chart. The cup section was created from June 22 to July 4, and the handle section is currently in progress. If the pattern completes, a rise of approximately 16% is suggested.
Selling volume has decreased since July 6. The recent 30-day correlation coefficient between XRP and Bitcoin (BTC) was calculated at 0.84, identifying Bitcoin's trend as a key variable for XRP's breakout scenario. Bitcoin has risen approximately 6.7% in the past week, and despite the sale of about 3,588 BTC by Strategy, a 20% drop in Bitcoin mining stocks, and the impact of the Iran conflict, its daily decline was limited to 1%.
Accumulation by long-term holders was also observed. In the HODL Wave indicator, which distinguishes supply by holding period, the proportion of XRP supply held by the 1-2 year holding group expanded from 12.8% to 15.33% since July 1. During the same period, XRP remained in the $1.05-$1.11 range. At exchanges, inflows increased for two days in early July, followed by a continuation of outflows.
Technical turning points are $1.08 and $1.19. $1.08 is presented as a support level, and exceeding $1.12 fulfills the conditions for completing the handle section. Subsequently, if a breakout above $1.19, the Fibonacci 61.8% retracement line, is confirmed, a target price of $1.38, representing an approximately 16% increase, is suggested.
The opposite scenario is also clear. If the daily closing price ends below $1.08, the cup-and-handle pattern will be invalidated, and there is a possibility of a decline to $1. Given that the correlation coefficient between Bitcoin and XRP is 0.84, a sharp drop in Bitcoin is also identified as a risk factor for XRP's weakness.
[Article Key Summary]
-XRP is forming a cup-and-handle pattern, and if it breaks above $1.19, a target price of $1.38, representing an approximately 16% increase, is suggested.
-The proportion of XRP supply held by 1-2 year long-term holders expanded from 12.8% to 15.33% since July 1.
-If the daily closing price falls below $1.08, the bullish pattern will be invalidated, and a decline to $1 is possible.
*Disclaimer: This article is for investment reference only and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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