Technical analyst Joe Mitoshi identifies an extremely long bullish spiral in the XRP Ichimoku cloud, using a Gann fan to mark important targets.
XRP is in a long period of consolidation, as evidenced by Mitoshi’s recent analysis of X. The Gann Fan, drawn from a significant high, displays a series of angles that have historically served as potential support and resistance levels.
XRP Gann Fan Analysis
In Mitoshi diagramThe Gann Fan starts from a significant high, namely the all-time high of $3.3, and extends downwards. The main 1/1 angle drawn in red is crucial as it currently acts as a major resistance level near the $1 mark.
Other angles such as 2/1, 3/1, 4/1 and 8/1 are also visible but less noticeable. These angles represent different slopes of price action and can serve as potential resistance and support.
At the time of Mitoshi’s analysis, XRP was changing hands at $0.6279, well below the main 1/1 Gann line. This position points to a bearish sentiment as the price remains below this significant resistance level. A break above this line could signal a bullish trend targeting higher levels such as $1.5.
Ichimoku Cloud and Accumulation Phase
The analysis also uses the Ichimoku cloud. The various lines of the cloud, including Tenkan-sen, Kijun-sen, Senkou Span A and B, indicate that XRP is in a consolidation phase. The flat appearance of the cloud indicates an accumulation phase, where the price is spiraling before a significant move.
The longer XRP Consolidates In this range, the potential breakout may be even more significant. Historically, long accumulation phases have led to sharp price movements.
The lower boundaries of the Ichimoku Cloud and previous price action lows around $0.50 provide strong support. Immediate resistance is the 1/1 Gann angle around $1. If XRP breaks this resistance, it could target higher Gann angles with significant resistance around $1.50 and above.
Moreover, the current setup suggests a favorable risk-reward (R:R) ratio for long positions, suggesting a breakout above the Gann Fan. However, caution is advised as the price is still below the critical 1/1 Gann angle. Failure to break above this level could lead to further consolidation or a decline to lower support levels around $0.5
Current XRP Position
Following Mitoshi’s analysis, XRP has fallen from its high amid the ongoing crypto market pullback. The asset has given up psychological support in the amount of $0.60At the time of publication, trading is currently at $0.5711.
The price is currently within the Bollinger Bands, indicating that it is not overbought or oversold. In addition, the width of the bands suggests moderate volatility. In addition, the MACD line is slightly above the signal line, indicating bullish sentiment. However, the histogram shows declining momentum, indicating caution.
