Market analyst The Great Mattsby (TGM) has highlighted the increasing bullish momentum surrounding XRP, particularly through the lens of the Ichimoku Cloud.
On the weekly chart, XRP has been challenging a significant resistance level since mid-July 2024. The price action reveals that XRP is struggling to maintain its position above the 200-week moving average, which is currently around $0.6176. This moving average is a crucial indicator, often serving as a boundary between bearish and bullish market phases.
TGM noted that XRP has repeatedly tested this resistance zone, reflecting ongoing selling pressure. Despite these challenges, XRP has managed to stay above this key level, suggesting the possibility of a bullish reversal if it can continue its upward momentum. The analyst emphasized that a clear breakout above the $0.65 to $0.68 range could indicate a shift in momentum, turning the 200-week moving average from resistance into support.
If XRP successfully breaks through this level, the next major target could be around $0.90. This target aligns with a significant blue trendline on the chart, representing a crucial milestone that XRP could achieve if bullish momentum continues to grow.
XRP and the Ichimoku Cloud
According to TGM, XRP is currently pressing against the top of its Ichimoku Cloud, signaling a growing potential for a bullish breakout. The cloud is thinning and nearing a flip to green, which typically indicates a trend reversal from bearish to bullish. This thinning cloud suggests weakening resistance, and as long as XRP's price continues to climb, it could eventually break through this barrier. A close above the Ichimoku Cloud would be a strong signal of a trend reversal, possibly leading to a significant rally.
XRP Monthly Chart Insights
On the monthly chart, TGM observed that XRP's price action is consolidating near a crucial resistance zone defined by a long-standing arc pattern. This arc has served as a formidable resistance level for years, but XRP is now edging closer to breaking through it.
A positive sign on the monthly chart is the solid support provided by the 100-month moving average, which has held strong since June 2022. Despite brief dips below this level, XRP has consistently rebounded. Additionally, the 50-month moving average, which previously acted as resistance, has now turned into support. TGM also highlighted the significance of the 1.618 Fibonacci retracement level, around $0.41, which has been a critical support level in recent months.
A breakout above this arc and sustained upward movement could propel XRP to new significant highs. The analyst identifies potential targets at the 2.272 and 2.618 Fibonacci extensions, which could see XRP reaching $9 and potentially as high as $29 in the longer term.
Key XRP Targets to Monitor
In the short term, the crucial levels to watch for XRP are $0.624 and $0.90. Clearing these levels could pave the way for a test of the psychological $1 mark, followed by a potential move toward $3.
The immediate challenge is the Ichimoku Cloud's resistance near $0.624, but once this barrier is overcome, the path to higher targets could become clearer.
Currently, XRP is trading at $0.5983, down 3.94% this month after a strong 31% gain in July 2024. This consolidation phase may be setting the stage for a significant breakout if the bullish momentum continues to build.
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