- XRP price confirmed the most sought-after short entry condition within the Ichimoku Kinko Hyo system on Sunday.
- Monday’s price action is retesting the breakout from below the Ichimoku Cloud.
- Significant downside potential ahead if bears remain in control.
XRP price action shows a confirmed Ideal Bearish Ichimoku Breakout on the daily chart. However, bears failed to follow through, which may be due to some stubborn bullish pressure preventing a move lower. As a result, bullish conviction is now being tested, and so far, it appears to be waning.
XRP price positioned for bears to drive Ripple down to $0.65
XRP price shows bulls are currently in temporary control during the Monday trade session. While the daily open is above the close, bulls need to close XRP price at or above $0.745 to return price inside the Ichimoku Cloud. Failure to do so would confirm that the breakout below the Ichimoku Cloud was an honest break, giving bears the signal that selling pressure is likely to return and in earnest.
The first projected target for short-sellers is likely the logarithmic 50% Fibonacci retracement of the most recent major swing high of $1.96 to the low of the weekly strong bar of $0.22 – which is at $0.64. If $0.64 fails as support, then the next support level for XRP price doesn’t appear until the 61.8% Fibonacci retracement at $0.49.
XRP/USD Daily Ichimoku Kinko Hyo Chart
If bulls want to overcome the near-term bearish outlook, they’ll need to complete an Ideal Bullish Ichimoku Breakout. Unfortunately, that is a difficult goal for bulls to achieve because not only does XRP price need to close above the Ichimoku Cloud, the Chikou Span needs to close above the candlesticks and be in open space – a close at $0.85 is the minimum price level to confirm an Ideal Bullish Ichimoku Breakout.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Week Ahead: Altcoin plays for traders as Bitcoin crosses $42,000

Bitcoin price hit $40,000 over the weekend as investors anticipate a spot BTC ETF approval in January. Bitcoin trades around $42,000 and shows no signs of stopping. This article will focus on what to expect this week and the outlook for BTC and if the fourth cycle is any different.
Crypto exchanges serving Indian residents to comply with Anti-Money Laundering guidelines: Indian Parliament

Crypto exchanges serving Indian residents to face action if not compliant with Anti-Money Laundering and Countering of Financial Terrorism guidelines.The process of registering offshore exchanges, Virtual Digital Asset service providers has been initiated.
Dogecoin breaks key $0.088 barrier ahead of tenth birthday, 87% DOGE holders at profit

As Dogecoin (DOGE) approaches its tenth anniversary on Wednesday, the Shiba-Inu-themed meme cryptocurrency has surpassed a crucial resistance level at $0.088076, reaching the highest level since mid-April.
Bitcoin price could rally to $45,000 ahead of BTC halving event in April 2024

Bitcoin price crossed the $41,000 mark on Binance, in its ongoing uptrend. BTC price rally is likely driven by the anticipation of Spot Bitcoin ETF approval. There are more catalysts driving BTC price gains in the current cycle.
Analyzing potential $30k corrections ahead of BTC ETF approval

Bitcoin has slowed down its 2023 bull rally as it approaches the $37,000 level. After three weeks of consolidating around this level, BTC shows no directional bias whatsoever. Some investors speculate this could be an upward-sloping accumulation that leads to a $40,000 rally.