- The price of XRP has technical barriers to it.
- There are signs of some strong upward momentum ahead.
- The bearish bias remains strong but weakens every day.
XRP price is rallying higher despite some intense selling pressure that was present in the final days of 2021. Bulls are looking to make some subtle moves above two key resistance areas that, if successful, could potentially push XRP to previous all-time highs.
XRP Price Sets a Floor of Support
XRP price is swinging above and below the 38.2 Fibonacci retracement at $0.84 and the 100% Fibonacci Extension at $0.82. It closed inside the Ichimoku cloud with yesterday’s close – for the first time since November 20.
The cloud is the worst place to be a financial instrument for speculators. The cloud represents prisms, volatility, indecision, and misery. Within the Ichimoku Kinko Hyo system, the cloud is something to avoid and not get involved in. Inside the cloud, first XRP price should move above: daily Tenkan-Sen and daily Kijun-Sen at $0.89.
Above that, the XRP price should break above and close above the most fundamental level within the Ichimoku Kinko Hyo system: Senkou Span B. Senkou Span B also happens to be the top of the Ichimoku Cloud for Ethereum price. Senkou Span B’s resistance is reinforced by how long it stays at one price level. The more stretched the Senkou Span B is, the more powerful the Senkou Span B will be.
Senkou Span B is located just below the critical $1.00 price level at $0.97. Bulls and bears should expect a flurry of activity around this price range if XRP price moves up to Senkou Span B. It would be rare for XRP price to test Senkou Span B once and then close above it. Participants are likely to get frustrated with the way XRP’s price action has performed throughout January.
XRP / USDT Ichimoku Daily Chart
A clear close at or above $0.97 would prepare XRP price to move to test the next critical resistance level at $1.25.
Any close at or below $0.78 is likely to trigger a major breakdown towards the $0.50 value area.