• 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.

 

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