Long-term review and outlook for Ripple utilizing the Ichimoku Kinko Hyo system.
– XRP may have to wait until a resolution with the SEC is met before real liquidity can return.
Above: Ripple (XRPUSD)
It’s sometimes hard to remember how many U.S.-based exchanges eliminated the buying of Ripple. The result of that move was not just a price drop but a massive drop in participation from the broader US market. The combination of congested technical and halted accumulation via US-based exchanges could trigger a huge influx of capital to XRP when the SEC and Ripple finally come to some end to their legal battle. If XRP were a stock/security (pun intended), I believe any bad news has already been mostly priced in.
XRP has one primary condition that leads me to favor an overall bullish outlook: the Chikou Span above the candlesticks. However, as bullish as that condition is, the immediate price action on the 3-week chart is one of just plain ugliness. XRP is inside the Cloud – a very thick Cloud. The Cloud in the Ichimoku system is horrible for any instrument to be. The Cloud represents volatility, indecision, anxiety, and all things that are bad in the market. I affectionally refer to it as ‘the place where trading accounts go to die.’
Given the proximity of the current 3-week candlestick from the Tenkan-Sen and Kijun-Sen, further downside pressure may be limited. The 3-week Kijun-Sen is at $1.07, and the Tenkan-Sen is at 1.155. Additionally, as long as the current 3-week candlestick doesn’t make a new low, a bullish pivot candlestick pattern could form. The bullish pivot candlestick pattern is a three-bar pattern where the middle candlestick has a lower low and a lower high than the candlestick on its right and left. Ideally, the current 3-week candlestick would close above the open and close of the prior two candlesticks, but it’s unnecessary.
The target zone for bulls is a close above the Cloud at $1.80. Unfortunately, bulls won’t see a drop from $.180 until the 3-week candlestick that opens on April 18th, 2022. However, if bulls push XRP higher and close to $1.80, then the current Elliot Swing structure and Fibonacci expansions point to the next all-time high occurring near $5.45.
Advertisement
Save money on your currency transfers with TorFX, voted International Money Transfer Provider of the Year 2016 – 2020. Their goal is to connect clients with ultra competitive exchange rates and a uniquely dedicated service whether they choose to trade online or over the telephone.
Find out more here.