XRP Moving Above 'Cloud' Resistance is Bullish for Bitcoin: Analyst
We view XRP's breakout above the Ichimoku cloud as a good example for bitcoin, Fairlead's Katie Stockton said.
Payments-focused XRP has set a bullish precedent for market leader bitcoin (BTC) with a move above key price resistance that has opened doors for a sustained rally.
XRP surged nearly 60% last week, registering its best performance since August 2021. The rally saw prices move convincingly above a technical analysis indicator called "Ichimoku cloud" on the weekly chart, confirming a bullish breakout.
Bitcoin (BTC) is yet to achieve that feat.
"We view [XRP's] cloud breakout as a good example for bitcoin," founder and managing partner at Fairlead Strategies said in a note to clients.
The Ichimoku Cloud, a technical analysis indicator created by Japanese journalist Goichi Hosoda in the late 1960s, is widely used by traders and analysts to identify support and resistance levels and gauge trend changes. The indicator comprises five lines based on the price's 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. The spread between the Leading Span A and the leading Span B represents the cloud.
Crossovers above or below the cloud are widely taken to represent bullish or bearish trend change.
XRP has established a foothold above the Ichimoku cloud, while bitcoin remains locked in a narrow range below the cloud resistance (upper end).The token's breakout follows a year-long consolidation or basing pattern and suggests more gains ahead.
"The move is meaningful on the chart because it resolves a year-long basing process higher. Intermediate-term momentum is positive and there are (surprisingly) no signs of upside exhaustion, supporting upside follow-through, with next resistance near $0.92," Stockton noted.
A similar bullish outlook awaits bitcoin on the higher side of the Ichimoku cloud, with the next resistance level at $31,900.
At press time, XRP changed hands at 83 cents, while bitcoin traded near $30,000.
Edited by Parikshit Mishra.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
VIPBitget VIP Weekly Research Insights
As the crypto market recovers in 2025, Digital Asset Treasury (DAT) firms and protocol token buybacks are drawing increasing attention. DAT refers to public companies accumulating crypto assets as part of their treasury. This model enhances shareholder returns through yield and price appreciation, while avoiding the direct risks of holding crypto. Similar to an ETF but more active, DAT structures can generate additional income via staking or lending, driving NAV growth. Protocol token buybacks, such as those seen with HYPE, LINK, and ENA, use protocol revenues to automatically repurchase and burn tokens. This reduces circulating supply and creates a deflationary effect. Key drivers for upside include institutional capital inflows and potential Fed rate cuts, which would stimulate risk assets. Combined with buyback mechanisms that reinforce value capture, these assets are well-positioned to lead in the next market rebound.
Trending news
MoreCrypto prices
More
