Jonathan Morgan
Independent Analyst
- XRP price has technical roadblocks ahead of it.
- Signs of some strong bullish momentum ahead appear.
- The bearish bias remains strong but is becoming weaker every day.
XRP price marches higher despite some intense selling pressure that existed in the final days of 2021. Bulls are on the lookout for some precise moves above two primary resistance zones that, if successful, will likely push XRP to prior all-time highs.
XRP price establishes a floor for support
XRP price has been oscillating above and below the 38.2 Fibonacci retracement at $0.84 and the 100% Fibonacci expansion at $0.82. It had a close inside the Ichimoku Cloud on yesterday’s close – the first time since November 20.
The Cloud is the worst place an instrument can be in for speculators. The Cloud represents whipsaws, volatility, indecision, and misery. Within the Ichimoku Kinko Hyo system, the Cloud is something to be avoided and not participate in. Inside the Cloud is the first hurdle XRP price must move above: the daily Tenkan-Sen and Kijun-Sen at $0.89.
Above that, XRP price must cross above and close above the most substantial level within the Ichimoku Kinko Hyo system: Senkou Span B. Senkou Span B happens to be the top of the Ichimoku Cloud for Ethereum price as well. Senkou Span B’s resistance is augmented by how long it spends at a single price level. The more extended Senkou Span B is flat, the more powerful Senkou Span B becomes.
Senkou Span B is just below the critical $1.00 price level at $0.97. Bulls and bears should expect a flurry of activity around that price range if XRP price moves up to the Senkou Span B. It would be rare for XRP price to test Senkou Span B once and then close above it. It is more likely that participants will become frustrated with the way XRP price action performs throughout January.
XRP/USDT Daily Ichimoku Chart
A clear close at or above $0.97 would set up XRP price for a move to test the next critical resistance level at $1.25.
Any close at or below $0.78 would likely trigger a significant collapse towards the $0.50 value area.
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