XRP slipped below the Ichimoku Cloud on the back of the latest price crash, flipping the $1.33 level to the most immediate support.
XRP fell 9% on Sept. 15 after the CLARITY Act vote failed, pushing the cryptocurrency below the Ichimoku Cloud on its daily chart. The drop also took XRP below $1.3300, turning an important support level into resistance.
Currently, XRP trades around $1.3010, just above the 0.5 Fibonacci retracement at $1.2950. The sell-off has weakened several parts of XRP’s technical structure, but some indicators still leave room for a possible recovery.
XRP’s September Crash
XRP entered September in a stronger position after its August rally pushed the token out of a long period of consolidation.
The move took XRP above $1.3300, which then became an important support level after it pulled back from the $1.69 high. However, the Sept. 15 failure of the CLARITY Act vote triggered a massive sell-off, sending XRP about 9% lower in one session.
The drop erased weeks of consolidation and pushed XRP below $1.3300. It also weakened several technical structures that had supported the earlier rally.
By the time of this press, XRP had fallen to around $1.3010 and was trading close to the $1.2950 0.5 Fibonacci level. The next few sessions could help in determining whether XRP can stabilize or face another decline.
XRP Falls Below the Ichimoku Cloud
The Ichimoku Cloud has now become one of the main technical hurdles for XRP. On the daily chart, XRP trades below both cloud boundaries, with Senkou Span A at $1.3850 and Senkou Span B at $1.3426.
Notably, trading below both levels gives the Ichimoku setup a bearish reading and places the cloud above XRP as resistance.
The Tenkan-sen also sits above the current price at $1.3701, while the Kijun-sen sits at $1.3999. With XRP around $1.3010, the token remains below both lines.
This shows that XRP has lost several important short- and medium-term levels. The Kijun-sen at $1.3999 is especially important because XRP needs to recover above it to improve the daily chart’s technical structure.
The future cloud gives a slightly different signal. The projected Kumo is narrowing in the near term and could later twist, meaning the longer-term trend could change if XRP improves. Before that can happen, however, XRP needs to reclaim $1.3426 at Senkou Span B and move back into the cloud.
$1.3300 Becomes XRP’s Key Resistance
The $1.3300 level is now critical because it had served as support after the August breakout. XRP lost that level during the Sept. 15 crash, flipping it from support to resistance. A daily close above $1.3300 would give buyers an important technical level to work with.
Several resistance levels sit above $1.3300. Senkou Span B stands at $1.3426, while Senkou Span A rests at $1.3850 and the Kijun-sen at $1.3999.
The 0.618 Fibonacci retracement at $1.3802 also falls within this area, creating a resistance zone between about $1.38 and $1.40. Above that, XRP faces major horizontal resistance at $1.4900.
A confirmed daily close above $1.4900 would change the current range structure. For now, though, XRP must first recover the lower resistance levels before $1.4900 becomes a realistic focus.
XRP DMI Shows a Strong Trend but Mixed Pressure
The daily Directional Movement Index gives a mixed view of XRP’s current setup. The Average Directional Index stands at 35.28, above the 25 level commonly used to identify a meaningful trend. This shows that XRP remains in a strong directional market.
Meanwhile, the +DI, which measures bullish pressure, stands at 25.41, while the -DI, which measures bearish pressure, sits at 17.18. With these figures, the +DI remains above the -DI despite the September 15 sell-off.
The -DI rose sharply during the crash but has since stabilized. At the same time, the +DI dropped during the sell-off but has managed to hold its current position. This leaves the DMI picture mixed.
XRP Fibonacci Levels
The Fibonacci retracement drawn from XRP’s August low of $0.9887 to its high of $1.6962 shows the key levels on both sides of the current price. At $1.3010, XRP sits only slightly above the 0.5 Fibonacci retracement at $1.2950.
A daily close below $1.2950 could bring the next major Fibonacci level at $1.1815 into focus. That level represents the 0.33 retracement. A deeper decline could then expose the 0.236 level at $1.1230. For the current technical structure to hold, buyers need to defend the $1.2950 area.
On the upside, XRP first needs to recover $1.3300 before it can challenge the 0.618 Fibonacci level at $1.3802. Above that, the 0.786 level sits at $1.5112, followed by the 0.888 level at $1.5967.
The longer-term Fibonacci extension targets stand at $1.9644 and $2.1208, although these levels only become relevant if XRP first breaks convincingly above the $1.6962 August high. For now, $1.3300 remains the key level XRP needs to reclaim after the Sept. 15 breakdown.
Be the first to comment