XRP, a payments-focused cryptocurrency, has created a precedent that is bullish for the market leader Bitcoin (BTC), with a price move above key resistance. This has paved the way for a sustained rise.

XRP soared by nearly 60% in the last week. This is its best performance since 2021. Prices moved convincingly above the technical analysis indicator “Ichimoku clouds” on the weekly graph, confirming a breakout.

Bitcoin (BTC), however, has yet to reach that milestone.

Fairlead Strategies’ founder and managing director, David Fairlead, wrote to clients that “we view [XRP’s] cloud break out as a great example for bitcoin.”

Ichimoku Cloud is a popular technical analysis indicator that was created by Japanese journalist Goichi HOSODA in the late 1960s. It’s used by analysts and traders to identify resistance and support levels, and measure trend changes. The indicator consists of five lines, based on price moving averages. Leading Span A and Leading Span B are the first two. Cloud is represented by the spread between Leading Span A & Leading Span B.

Many people interpret crossovers above or beneath the cloud as a bullish or a bearish trend change.

(TradingView/CoinDesk)

XRP is now above the Ichimoku Cloud, while Bitcoin remains in a tight range just below cloud resistance.

The move is significant on the chart as it ends a basing process that lasted for a whole year. Stockton said that the intermediate-term momentum was positive, and that there were (surprisingly) no signs of exhaustion on the upside. This supported a continuation upward, with resistance next near $0.92.

The next resistance level for bitcoin is $31,900.

At the time of publication, XRP was trading at 83 cents while bitcoin was near $30,000.

Parikshit Miishra is the editor.