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XRP has broken through a downtrend channel that lasted for about a year. However, it is currently facing a significant technical test to settle above $2, being blocked by the weekly Ichimoku Kinko Hyo resistance.
The Crypto Basic reported on September 30 (local time) that XRP is trading around $1.5138, seeking direction among key technical indicators. XRP had previously broken through the upper bound of the downtrend channel, which had suppressed its price for nearly a year, during a surge in August. Even during the price correction in September, it successfully retested the upper trendline of the channel, which previously acted as resistance, and converted it into support, thereby increasing the reliability of the breakout.
However, the upper resistance wall for a long-term uptrend remains thick. Currently, the Ichimoku Kinko Hyo on the weekly chart is acting as a major resistance for XRP, with Senkou Span B located at $2.0191. The weekly cloud (Kumo) hangs as a red bearish cloud above the price, indicating that the long-term technical structure still has a bearish bias. It is pointed out that for XRP to confirm a full-fledged long-term uptrend, it must overcome the Senkou Span B at $2.0191 based on the weekly closing price.
Directional indicators, which measure trend strength, suggest that buying pressure still dominates. In the directional indicators, the Plus Directional Indicator (+DI), representing buying pressure, recorded 28.57, surpassing the Minus Directional Indicator (-DI), representing selling pressure, which was 17.15. Both indicators have gradually decreased compared to their August highs, but the selling indicator has also declined, suggesting that selling forces have not taken control of the market. If the Average Directional Index secures support and rises again, there is a possibility that strong momentum could revive.
In the short term, the main baselines of the Ichimoku Kinko Hyo are acting as support. While short-term momentum and medium-term trend are in balance, the Lagging Span (Chikou Span), which projects the closing price 26 periods ago, also maintains a neutral flow. Market experts assessed that the consolidation phase observed after the downtrend channel breakout is not an end to the uptrend but rather a process of cooling down overheating.
Having shed the shackles of a 1-year downtrend channel, XRP is now in a direct confrontation with the $2.0191 Ichimoku Kinko Hyo resistance line. Market attention is focused on whether it can break through the strong cloud barrier and reach the $2 mark, based on its technically bullish foundation.
[Key Article Summary]
-XRP has broken upwards through a 1-year downtrend channel and completed a retest, but the weekly Ichimoku Kinko Hyo is preventing its entry above $2.
-With Senkou Span B located at $2.0191, reclaiming this level based on the weekly closing price is required for a long-term bullish reversal.
-The Plus Directional Indicator (28.57) exceeds the Minus Directional Indicator (17.15), maintaining buying dominance, suggesting that expectations for a rebound remain.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. This content should be interpreted for informational purposes only.*
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