Jonathan Morgan
Independent Analyst
- XRP price continues to recover from Monday’s sell-off.
- Buyers look to extend the bounce from Tuesday into Wednesday.
- Critical resistance levels ahead threaten to terminate the recent rally.
XRP price collapsed below three crucial Ichimoku support levels on Monday: the Tenkan-Sen, Kijun-Sen, and top of the Ichimoku Cloud (Senkou Span B). The most significant of these drops was the move below the most substantial level of the Ichimoku system, Senkou Span B. Bulls kept XRP price above Senkou Span A despite the intense selling pressure and are now positioned to test those former Ichimoku support zones as resistance.
XRP price swiftly rebounds off of vital support, bullish conviction now tested
XRP price is approaching a make or break point for buyers. The recent fall below the top of the Cloud (Senkou Span B), the Tenkan-Sen, and Kijun-Sen has resulted in those levels acting as the primary resistance cluster on the daily chart. While the rally is impressive and no doubt bullish – it could quickly be terminated if bulls fail to crack above those three Ichimoku levels in the $0.750 to $0.785 value area.
The most important goal to complete for bulls is a daily close at or above $0.79. In that scenario, XRP price would return above the Ichimoku Cloud, and the Chikou Span would remain above the bodies of the candlesticks and in open space. It would be the first true Ideal Bullish Ichimoku Breakout XRP has seen since November 4, 2021, and only the second since August 9, 2021. A push to test $1 would be highly likely if $0.79 is reached as a daily close.
XRP/USD Daily Ichimoku Kinko Hyo Chart
However, downside risks remain. With XRP price inside the Ichimoku Cloud, indecision is now the name of the game. While it may look like bears have an easier road to taking control due to the proximity of XRP to the bottom of the Cloud, their road is much more difficult. Until the Chikou Span closes below the bodies of the candlesticks, XRP remains within some significant support. Bears would have to push XRP price below the $0.70 and $0.60 zones to gain control
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Is Altcoin Season here as Bitcoin reaches a new all-time high?
Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.
Shanghai court confirms legal recognition of crypto ownership
A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.