Weekly Cloud Indicator: XRP May Rain Down Pain On Ripple Investors
Weeks ago, XRP outperformed the rest of the market, surprising Ripple investors and other crypto holders alike. A recovery looked to be in full effect, but the altcoin has since fallen back to the bottom of weekly cloud support where bulls are trying to hold.
If the cryptocurrency loses cloud support on weekly timeframes, it could rain down a storm of pain on XRP investors who have already sustained so much frustration in the last few years.
XRP Ready To Fall Out Of Cloud Support, Storm Of Pain Could Strike Holders
XRP finally showed investors a glimmer of hope that after a brutal trend of deeper lows and general stagnancy compared to the rest of the space, by beating the rest of majors about a month ago in week-over-week returns.
Since then, the cryptocurrency has once again been hovering at around $0.25 per token, which is roughly the median price throughout all of 2020.
Related Reading | Underdog Story: Why XRP Could Soon Outperform Bitcoin And Ethereum
Ripple appears to be going nowhere fast. The latest slow grind down is now potentially forecasting a storm ahead, and unless weekly cloud support holds, pain could soon rain down even harder on XRP investors.
XRPUSD Weekly Ichimoku Cloud Support Holding | Source: TradingView
Ichimoku: The “At A Glance” Indicator That’s More Than Meets The Eye
XRP us currently holding the bottom of weekly cloud support, and losing it could spell a storm ahead.
However, the Ichimoku indicator, which loosely translates to “at a glance,” is actually more than meets the eye.
The indicator was designed by a Japanese journalist to provide a quick look at the bigger picture of the overall market, which is why the tool features so many different tools and lines.
The cloud is just one of many ways to read the Ichimoku. Support and resistance, for example, is also found by looking at the chikou span. The chikou span lags behind price action, showing there historical support and resistance lies, making it a logical place to act as such in present price action.
Related Reading | Why XRP’s Waning Momentum May Be The Calm Before The Storm Surge
Ichimoku looks forward just as much as it looks back, and the cloud is currently flipping green, suggesting future bullish price action on weekly timeframes.
Yet another sign that XRP will hold strong and instead surge higher, is the fact that the tenkan-sen is above the kijun-sen, signalling bullish price action.
On weekly timeframes, the bearish crossover indicated by the red “X” marks the first bearish crossover that brought about the bear market. Is this first weekly bullish counterpart, triggered just weeks ago, a sign that Ripple will hold just find at the cloud, and target the stars and moon next?
Featured image from Deposit Photos, Charts by TradingView
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via https://www.ohnocrypto.com
Tony Spilotro, @KhareemSudlow