XRP surpasses the “cloud” of the Ichimoku equilibrium table ── Is it a bullish precedent for Bitcoin | CoinDesk JAPAN | Coin Desk Japan

Payments-focused cryptocurrency XRP (XRP) has broken out of key price resistance lines, opening the door for sustained upside. This set a bullish precedent for market leader Bitcoin (BTC).

XRP surged nearly 60% last week, marking its best performance since August 2021. The rise confirmed a bullish breakout as the price strongly outperformed the Ichimoku Kinko Hyo’s technical indicator known as the ‘cloud’ on the weekly chart.

Bitcoin has yet to achieve that feat.

“We see XRP’s ‘cloud’ breakout as a good precedent for Bitcoin,” Katie Stockton, founder and managing partner of technical analysis firm Fairlead Strategies, said in a note to clients.

Japanese journalist and stock commentator Goichi Hosoda devised the Ichimoku Kinko Hyo in the late 1960s, and it is widely used by traders and analysts to identify support and resistance levels and gauge changes in trends.

The indicator consists of 5 lines based on the price moving average, Leading Span A, Leading Span B, Conversion Line, Base Line and Lagging Span. The spread between Leading Span A and Leading Span B is called a cloud.

A move above or below the cloud is widely accepted as indicating a change in trend towards bullish or bearish.

(TradingView/CoinDesk)

While XRP has gained a foothold on the Ichimoku cloud, Bitcoin remains trapped in a narrow range within the cloud. A breakout of the token suggests further rally ahead.

“XRP’s move makes sense as it breaks a year-long baseline. Medium-term momentum is positive, with (surprisingly) no signs of an end to the upside, supporting the upside and the next resistance near $0.92,” notes Stockton.

A similar bullish outlook awaits Bitcoin, which is high in the Ichimoku cloud, with next resistance at $31,900.

At the time of writing, XRP was trading near 82 cents and Bitcoin near $30,300.

｜Translation: CoinDesk JAPAN
｜Editing: Toshihiko Inoue
｜Image: Shutterstock
｜Original: XRP Moving Above ‘Cloud’ Resistance is Bullish Precedent for Bitcoin: Analyst