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. 

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.

Leading crypto payments company Ripple unlocks an additional 500 million XRP from escrow for August as the token’s price crashes to $0.57.  

Whale Alert, a popular crypto whale tracking resource, indexed the latest transaction in an X post yesterday. According to data from Whale Alert, Ripple’s escrow system released the 500 million XRP in a single transaction into rDq…EsF, an address affiliated with the crypto payments company, at 22:38 (UTC) yesterday. 

This address currently boasts a balance of 500 million XRP. At the time of the transaction, the released funds were worth $281,693,718 ($281.69 million). 

Ripple Escrow Execution Calls Donald Trump The Crypto President  

Notably, the transaction came with an interesting memo referring to former U.S. President Donald Trump as the “Crypto President.” The memo also quizzed whether the Republican Party’s presidential candidate would become the official president of the Digital Asset Investor channel. 

Additionally, the memo categorically stated that Ripple did not write the memo’s details. Instead, it was written by an XRP holder, who uses the pseudonym “Bradisms.”

Ripple Previously Unlocks 500M XRP For August 

The recent transaction follows the initial release of 500 million XRP from escrow yesterday, August 2. As reported earlier, Ripple’s escrow system released the 500 million XRP in two tranches: 300 million and 200 million XRP, respectively. 

Following the latest release of 500 million XRP, Ripple has now unlocked 1 billion tokens from escrow for August. 

800M XRP Re-locked in Escrow 

It bears mentioning that Ripple’s affiliated blockchain addresses have been involved in several transactions this month. Since the beginning of the month, these addresses have shuffled more than 1 billion XRP. 

Out of the 1 billion XRP shuffled this month, 800 million XRP were re-locked in escrow, which is the typical practice of the company’s escrow program.

For context, Ripple usually unlocks 1 billion XRP. Afterward, the company re-locks 800 million XRP of the total sum while using the remaining 200 million XRP to cater to its business operations. However, this month, Ripple deviated from the usual routine by re-locking the 800 million XRP from its existing balance before unlocking the 1 billion tokens. 

XRP Price Drops to $0.57  

Meanwhile, the recent transaction coincided with a significant dip in XRP’s price. A few hours after Ripple unlocked the 500 million tokens from escrow, the price plunged below $0.55. 

However, it did not take up to an hour before XRP surged above the $0.55 price territory. At the time of writing, XRP is trading at $0.5711, reflecting a daily decline of 1.35%. 

Recall that XRP ranked among the best-performing altcoins in July, reaching a monthly high of $0.65. However, XRP started August with a huge decline and has already plunged by 11.1% this month. 

Jenna X, a popular YouTuber and acclaimed “retired XRP maxi,” recently voiced that XRP is not meant to remain at low prices.

The community pundit argued that XRP’s fundamental value propositions are still much at play and have not changed. As a result, Jenna expressed her firm belief that XRP is not supposed to linger at the cheap trading range below $1.

XRP Fundamentals Warranting High Price Outlook

Notably, the XRP fundamentals Jenna referred to involve the asset’s use case in the financial industry. XRP enables multinational corporations to transfer funds quickly, inexpensively, and with significant transparency.

For instance, after Tranglo adopted Ripple’s XRP-based payment solution, the company saw a remarkable increase in transaction volume. It processed approximately 1,800% more in 2022, jumping $53 million from the previous year to $970 million.

Community figure Shannon Thorp has previously used similar arguments regarding XRP’s fundamentals to claim that XRP cannot remain cheap in the long run. In her analysis, Thorp even suggested that retail users will eventually be priced out.

How High Will XRP Go?

In subsequent analysis, Thorp argued that, given XRP’s strong use case in the payment industry, the ideal target for the asset is to be valued between $100 and $500. She cited the expectation that the cross-border payment market will be worth $250 trillion in the coming years. 

Notably, her bold projection attracted significant attention from the crypto community as the banker set a timeline for XRP to trade between $100 and $500. However, this projection has not been fulfilled, and the financial expert has acknowledged the mistaken estimation.

Meanwhile, in her recent statement, Jenna did not provide a specific outlook for XRP, even though she anticipates its value will not remain low. At press time, XRP is trading at $0.5689, having lost over 18% of its value over the past year.

Notably, community members reacting to Jenna’s sentiment expressed disagreement. Some argued that XRP would continue to remain cheap, even in this bull market, as it largely lagged behind rivals in the first quarter of the year during the bullish phase.

However, XRP has shown improved performance since last month, with its value increasing by over 70% from $0.38 to $0.65 in July. Analysts expect that recapturing the $0.93 price point could pave the way for higher values up to $10.