Ripple market update: XRP/USD rebound targets $0.4 supply area
|- Ripple spikes over 5% on the day revamping the trend from the support at $0.3200.
- Technically, the bulls have the mantle and Ripple is poised for further correction.
All eyes are currently set on $0.4 following the establishment of support at $0.3200 after the bearish wave that sent XRP/USD tumbling to mid-May levels. Ripple bulls were having it difficult to sustain the price above $0.4 while the upside had been capped at $0.41.
Meanwhile, the price has stepped above the 23.6% Fib retracement level taken between the last drop from 0.4122 to a low of $0.3200. Holding on to the 5.78% correction on the day, the price is immediately supported by the 50 Simple Moving Average (SMA) 1-h.
Also Read: Fundstrat Tom Lee on Bitcoin's pullback: Crypto winter is over
The immediate upside is capped by the 38.2% Fibonacci level. A break above this level will encounter more resistance at $0.3600. The support turned resistance levels at $0.3800 and $0.3900 will also limit movement heading to $0.4.
Technically, the bulls have the mantle and Ripple is poised for further correction. The Moving Average Convergence Divergence (MACD) 1-h is almost crossing into the positive side following an incredible recovery from levels around -0.01360. The increasing divergence is a key indicator for the rising buying power.
XRP/USD 1-h chart
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