Ripple continues defying gravity with over 10% of day-on-day gains
|- XRP/USD breaks above SMA200 weekly for the first time since June 2018.
- The coin is vulnerable to short-term correction.
Ripple’s XRP hit another multi-month high at $0.4431 before the bulls hit the pause button. At the time of writing the third largest digital asset is changing hands at $0.4279.
Considering that the intraday RSI (the Relative Strength Index) has reversed to the downside, moving out from overbought territory, the further downside correction looks likely at this stage;
A slew of positive fundamentals has been driving XRP higher in recent days. Namely, Coinbase dropped the bomb announcing XRP support for NY users. However, the first reaction is fading away, which is also supportive of the short-term correction scenario.
The initial support is created by psychological $0.40, though the overall trend remains bullish as long as the price stays above $0.3860 (SMA50 weekly). Once it is cleared, the downside may be extended towards $0.3486 (DMA200) and to critical $0.30 guarded by the weekly low.
On the upside, once the growth is resumed, the coin may reach $0.45 barrier and proceed to $0.4943 (SMA100 weekly). An upside-looking RSI on a weekly chart makes this bullish scenario highly likely in the long run provided that the sentiments in a broader cryptocurrency market remain bullish.
XRP/USD, 1-day chart
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