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XRP at make or break point, bulls eye a breakout to retest $1

  • XRP price action has been bound to the inside of the Ichimoku Cloud, creating indecision and volatility.
  • The threshold for a bullish or bearish breakout has been reduced, but bears have an easier time initiating a downtrend here than bulls.
  • While bears currently have an easier time controlling the future breakout direction, bulls can easily breakout and begin a new uptrend.

XRP price action is in a very undesirable position: inside the Ichimoku Cloud. The Ichimoku Cloud represents pain, misery, volatility, indecision, and whipsaws – it's where trading accounts go to die. XRP teased a likely bullish breakout twice during last week's trading but failed to deliver.

XRP price indecisive ahead of a major breakout in either direction

XRP price is trading conditions where there is a strong case to be made for bulls and bears. XRP price is closer to confirming an Ideal Bearish Ichimoku Breakout from a price action perspective. However, bulls have a near equally strong opportunity to reverse XRP's market and push XRP higher.

A significant danger zone is up ahead for XRP bulls. If XRP fails to close at or above $0.755, it will slide into a new Ideal Bearish Ichimoku Breakout entry. That means the beginning of another downtrend would likely move to a target near the $0.50 to $0.55 value area.

XRP/USD Daily Ichimoku Kinko Hyo Chart

If bulls want to invalidate any near-term bearish outlook, then, at a minimum, they need to close XRP above the Ichimoku Cloud (Senkou Span B). That means a daily close at or above $0.79. Ideally, bulls should shoot for a close around $0.855 to confirm an Ideal Bullish Ichimoku Breakout – but mitigating further downside pressure is more important in the interim.

An Ideal Bullish Ichimoku Breakout entry at $0.855 would begin a new rise towards the $1 value area.

Author

Jonathan Morgan

Jonathan Morgan

Independent Analyst

Jonathan has been working as an Independent future, forex, and cryptocurrency trader and analyst for 8 years. He also has been writing for the past 5 years.

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