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XRP bulls attempt to wrest control from bears, $0.80 in sight

  • XRP price continues to recover from Monday’s sell-off.
  • Buyers look to extend the bounce from Tuesday into Wednesday.
  • Critical resistance levels ahead threaten to terminate the recent rally.

XRP price collapsed below three crucial Ichimoku support levels on Monday: the Tenkan-Sen, Kijun-Sen, and top of the Ichimoku Cloud (Senkou Span B). The most significant of these drops was the move below the most substantial level of the Ichimoku system, Senkou Span B. Bulls kept XRP price above Senkou Span A despite the intense selling pressure and are now positioned to test those former Ichimoku support zones as resistance.

XRP price swiftly rebounds off of vital support, bullish conviction now tested

XRP price is approaching a make or break point for buyers. The recent fall below the top of the Cloud (Senkou Span B), the Tenkan-Sen, and Kijun-Sen has resulted in those levels acting as the primary resistance cluster on the daily chart. While the rally is impressive and no doubt bullish – it could quickly be terminated if bulls fail to crack above those three Ichimoku levels in the $0.750 to $0.785 value area.

The most important goal to complete for bulls is a daily close at or above $0.79. In that scenario, XRP price would return above the Ichimoku Cloud, and the Chikou Span would remain above the bodies of the candlesticks and in open space. It would be the first true Ideal Bullish Ichimoku Breakout XRP has seen since November 4, 2021, and only the second since August 9, 2021. A push to test $1 would be highly likely if $0.79 is reached as a daily close.

XRP/USD Daily Ichimoku Kinko Hyo Chart

However, downside risks remain. With XRP price inside the Ichimoku Cloud, indecision is now the name of the game. While it may look like bears have an easier road to taking control due to the proximity of XRP to the bottom of the Cloud, their road is much more difficult. Until the Chikou Span closes below the bodies of the candlesticks, XRP remains within some significant support. Bears would have to push XRP price below the $0.70 and $0.60 zones to gain control

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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