|

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.

More from Jonathan Morgan
Share:

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

By subscribing you agree to our Terms and conditions.

Editor's Picks

Ripple faces persistent bear risks, shrugging off ETF inflows

Ripple is extending its decline for the second consecutive day, trading at $2.06 at the time of writing on Friday. Sentiment surrounding the cross-border remittance token continues to lag despite steady inflows into XRP spot ETFs. 

Luna Classic soars 20% as Do Kwon's sentence hearing looms

Luna Classic surges 20% on Friday, extending its recovery for the fourth consecutive day. Roughly 959 million tokens have been burned in December so far, fueling LUNC's recovery.

Crypto Today: Bitcoin, Ethereum, XRP pare gains despite increasing hopes of upcoming Fed rate cut

Bitcoin (BTC) is steadying above $91,000 at the time of writing on Friday. Resistance at $94,150 capped recovery on Wednesday, but in the meantime, bulls have contained downside risks above $90,000. 

Ethereum strengthens against BTC post-Fusaka, targeting $3,200 breakout

Ethereum trades above $3,100 on Friday, with bulls aiming for a breakout above a two-month-old resistance trendline. Ethereum gains strength against Bitcoin as demand for the major altcoin increases after the Fusaka upgrade.

Orange Juice Newsletter – Smart insights by real people. Every day.

A free newsletter highlighting key market trends to help traders stay a step ahead. Daily insights on the most relevant trading topics, compiled by our experts in an easy-to-read format so you never miss an important move.

Crypto Today: Bitcoin, Ethereum, XRP pare gains despite increasing hopes of upcoming Fed rate cut

Bitcoin (BTC) is steadying above $91,000 at the time of writing on Friday. Resistance at $94,150 capped recovery on Wednesday, but in the meantime, bulls have contained downside risks above $90,000.