- XRP price confirmed a close above the Ichimoku Cloud during the Tuesday trading session.
- Bulls continue to buy the dip, treating the Kijun-Sen as support.
- A clear breakout has yet to occur but could be imminent.
XRP price action was rejected from completing an Ideal Bullish Ichimoku Breakout on Monday and Tuesday but continued to push higher closes. XRP is now in between a constricted zone of support and resistance: the shared $0.77 price level with the 2022 Volume Point Of Control and daily Kijun-Sen as support, and the top of the Ichimoku Cloud (Senkou Span B) at $0.78 as resistance.
XRP price sees support structure continuing to rise as a significant breakout loom
XRP price has developed a bullish entry opportunity on its $0.02/3-box reversal Point and Figure chart. The theoretical long setup is a buy stop order at $0.82, a stop loss at $0.74, and a profit target at $1.06. The trade represents a 3:1 reward for the risk setup with a projected profit target of 30% from the entry. A trailing stop of two to three boxes would help protect any implied profit after the entry is triggered.
XRP/USDT $0.02/3-box Reversal Point and Figure Chart
However, downside risks do remain a concern. XRP price is very close to breaking out above the Ichimoku Cloud on the daily Ichimoku Kinko Hyo chart. But over the next five days, the Cloud becomes much thinner.
By Sunday, March 6, 2020, the threshold that bears need to meet to position XRP price into an Ideal Bearish Ichimoku Breakout becomes much easier. Instead of closing below $0.64 to initiate a new downtrend, bears only need to close XRP below $0.74.
XRP/USDT Daily Ichimoku Kinko Hyo Chart
If bulls want to maintain XRP price above the $0.75 value area and push for the $1.00 value area, then a breakout above the Ichimoku Cloud before Sunday is more than likely necessary.
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.