Jonathan Morgan
Independent Analyst
- XRP price continues to test the final and most decisive support level in the Ichimoku Kinko Hyo system: Senkou Span B.
- A drop below Senkou Span B will likely generate a swift move below the $0.90 and $0.80 value areas.
- Bears have a limited amount of time to capitalize on any weakness.
XRP price has spent twenty-one consecutive days attempting to push above the Tenkan-Sen. However, despite the Tenkan-Sen being the weakest support/resistance level in the Ichimoku Kinko Hyo system, XRP has been unable to sustain any move above it.
XRP price doggedly resisted from moving higher, now pressed between the weakest and strongest Ichimoku conditions
XRP price has near-term resistance against the Tenkan-Sen at $0.97 with near-term support at Senkou Span B (bottom of the Cloud) at $0.94. The Cloud represents indecision, volatility and consolidation. I affectionally call it the “place where trading accounts go to die.”
The most significant frustration for any bull or bear comes as XRP price trades against the weakest level in the Ichimoku system (Tenkan-Sen) and is unable to break above while it is supported against the most substantial level in the Ichimoku system (Senkou Span B) and fails to rally after finding support. Thus, sellers may be waiting for a close below Senkou Span B before pouncing on any shorting opportunity. A close below $0.93 would fulfill the final criteria for and confirm the ideal selling pattern in Ichimoku: the Ideal Bearish Ichimoku Breakout.
XRP/USD Daily Ichimoku Chart
While bears target the 161.8% Fibonacci expansion below the $0.70 value area, buyers want to maintain XRP price to levels that remain at least inside the Cloud. The Ichimoku indicator buyers want to watch is the Chikou Span. If the Chikou Span can close above the candlesticks, all of the criteria necessary to see XRP continue a clear and sustained bullish expansion phase are complete.
Sellers will likely need to hit the $0.70 value area before October 4th because the threshold for a bullish entry to target for a clear bullish breakout falls substantially on that date.
Like this article? Help us with some feedback by answering this survey:
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
Forecasting Ethereum price accumulation levels should bears takeover before FOMC
Ethereum price shows a clear sideways structure as it encounters a crucial hurdle. As a result, ETH has set up a liquidity zone around this level, but the winds might shift in favor of bears and induce volatility on Feb 1 when the FOMC convenes.
US Department of Justice brings down crypto ransomware group “Hive”, blocked over $130 million ransoms
The crypto space is no stranger to hacks and ransomware attacks as the anonymity that the blockchain technology offers masks the criminals easily. It seems like, the United States has managed to stop the crime before it could occur.
Hedera Hashgraph Price Prediction: HBAR's plan for 2023
Hedera Hashgraph price continues to bless loyal investors as the scalable smart contract token has rallied by 117% since the start of the new year. A breach of the trend at $0.06 could signal an end to the rally.
Solana price loses uptrend; Is sideways movement next, or will 26% corrections follow?
Solana price impressed traders and investors alike this month when the altcoin marked an exceptional rally of more than 150% to touch the $26 mark.
US Dollar Index struggles to defend 102.00 ahead of US PMI, GDP data
US Dollar Index (DXY) seesaws near 102.00 as the bulls struggle to defend the first daily gains in three, marked the previous day, during early Tuesday’s inactive trading.