According to technical analyst Katie Stockton of Fairlead, the recent breakout in XRP’s price above the Ichimoku cloud resistance level sets a bullish precedent for Bitcoin.
Last week, XRP, a cryptocurrency focused on payments, rallied nearly 60% for its best performance since August 2021. This powerful surge allowed XRP to decisively move above the Ichimoku cloud on its weekly price chart, confirming a decisive bullish breakout.
In contrast, Bitcoin, the leading cryptocurrency by market value, has not yet managed to break above its own Ichimoku cloud resistance.
So XRP’s ability to strongly push through this key technical barrier may bode well for Bitcoin’s chances of staging a similar breakout needed to sustain its ongoing rally.
According to Katie Stockton, founder of Fairlead Strategies, XRP breaking above its Ichimoku cloud resistance sets a positive example for Bitcoin’s potential to do the same.
The Ichimoku Cloud, created in the 1960s by Japanese analyst Goichi Hosoda, uses 5 lines based on moving price averages to identify support/resistance and signal trend changes. The area between the Leading Span A and Leading Span B lines forms the cloud.
Crossing above or below the cloud is seen as a decisive bullish or bearish trend shift. Since XRP decisively broke above its cloud, this suggests Bitcoin may also be able to rally strongly enough to overcome its own Ichimoku cloud resistance.
XRP has solidified its position above the Ichimoku cloud resistance, but Bitcoin remains stuck in a tight range under its own cloud resistance level.
XRP’s successful breakout comes after a year of consolidation and indicates further upside ahead. As analyst Katie Stockton noted, XRP’s bullish momentum remains strong without signs of exhaustion, supporting continued gains toward $0.92 resistance.
Bitcoin could see a similarly optimistic outlook if it can break above its cloud resistance, with the next key level around $31,900.
So XRP’s ability to decisively overcome the cloud after extended consolidation underscores this barrier’s significance. It suggests Bitcoin may be poised for a bull run when it finally achieves the same technical feat.
