XRP coiled and ready to spring more than 33% despite continued SEC concerns
|- 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.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.