Technical analyst Joe Mitoshi identifies an extremely long bullish coil on the XRP Ichimoku Cloud, leveraging the Gann Fan to call out significant targets.

XRP has been in a prolonged period of consolidation, evident from Mitoshi’s recent analysis on X. The Gann fan, plotted from a significant high point, displays a series of angles that have historically served as potential support and resistance levels.

XRP Gann Fan Analysis

In Mitoshi’s chart, the Gann fan originates from a significant high point, specifically the $3.3 all-time high, and extends downward. The primary 1/1 angle, drawn in red, is crucial as it currently acts as a major resistance level around the $1 mark.

Other angles such as 2/1, 3/1, 4/1, and 8/1 are also visible but are less prominent. These angles represent varying slopes of price movement and can serve as potential resistance and support.

At the time of Mitoshi’s analysis, XRP changed hands at $0.6279, well below the primary 1/1 Gann line. This position indicates a bearish sentiment since the price remains under this significant resistance level. A breakthrough above this line could signal a bullish trend, targeting higher levels like $1.5.

Ichimoku Cloud and Accumulation Phase

The analysis also leverages the Ichimoku Cloud. The cloud’s various lines, including the Tenkan-sen, Kijun-sen, Senkou Span A, and B, suggest XRP is within a consolidation phase. The flat appearance of the cloud indicates an accumulation phase, where the price is coiling before a significant move.

The longer XRP consolidates within this range, the more substantial the potential breakout could be. Historically, prolonged accumulation phases have led to sharp price movements.

The lower boundaries of the Ichimoku Cloud and previous price action lows around the $0.50 level provide strong support. Immediate resistance is the 1/1 Gann angle around $1. If XRP breaks above this resistance, it could target higher Gann angles, with significant resistance around $1.50 and beyond.

Moreover, the current setup suggests a favorable risk-to-reward (R:R) ratio for long positions, assuming a breakout above the Gann fan. However, caution is advised as the price is still below the critical 1/1 Gann angle. A failure to break above this level could result in continued consolidation or a decline to lower support levels around $0.5

XRP Current Position

Following the analysis from Mitoshi, XRP has dropped from its lofty position amid the ongoing crypto market retracement. The asset has given up the $0.60 psychological support, currently trading for $0.5711 at press time.

XRP 1D Chart

The price is currently within the Bollinger Bands, indicating it is not in an overbought or oversold condition. Also, the bands’ width suggests moderate volatility. Further, the MACD line is slightly above the signal line, indicating a bullish sentiment. However, the histogram shows decreasing momentum, suggesting the need for caution.