Ripple News : XRP’s Bullish Breakout Could Indicate Positive Outlook for Bitcoin

The post Ripple News : XRP’s Bullish Breakout Could Indicate Positive Outlook for Bitcoin appeared first on Coinpedia Fintech News

Ripple XRP has seen significant upward momentum, displaying its best performance since August 2021. Data shows that it has surged by 77.9% in the last seven days. This rally was accompanied by a notable development on the weekly chart, as XRP successfully breached a key technical analysis indicator known as the “Ichimoku cloud,” confirming a bullish breakout.

Bitcoin hasn’t achieved a similar breakthrough

In contrast, market leader Bitcoin (BTC) has not yet achieved a similar breakthrough. Market analysts and traders are observing XRP’s price action closely, considering it a potentially positive example for Bitcoin’s future performance.

The Ichimoku Cloud, created by Japanese journalist Goichi Hosoda in the late 1960s, is widely used by traders to assess support and resistance levels, as well as gauge potential trend changes. The indicator consists of five lines based on price moving averages: Leading Span A, Leading Span B, Conversion Line or Tenkan-Sen (T), Base Line or Kijun-Sen (K), and a lagging closing price line.

Source: CoinDesk

The space between Leading Span A and Leading Span B forms the cloud, and crossovers above or below it are interpreted as bullish or bearish signals for trend changes.

While XRP has secured a foothold above the Ichimoku cloud, bitcoin remains confined within a narrow range below the cloud resistance (upper end). XRP’s breakout follows a year-long period of consolidation, indicating potential further gains ahead.

Market observers note that the chart’s move is significant as it resolves the year-long basing process higher, and intermediate-term momentum is positive, with no evident signs of upside exhaustion. This sentiment supports the notion of possible continued upside movement for XRP, with the next resistance level around $0.92.

Similarly, a bullish outlook is anticipated for Bitcoin if it manages to breach the higher side of the Ichimoku cloud, with the next resistance level noted at $31,900. Traders and investors are closely monitoring both XRP and Bitcoin’s price movements, as they may offer insights into broader market trends and potential future price actions.