Ripple price analysis: XRP/USD must break this channel resistance for fresh investor interest
|- Ripple’s two-day recovery, unfortunately, failed to gain ground above critical levels at $0.27 and $0.28.
- XRP support areas a $0.2550 and $0.2500 are vulnerable to declines as long as the price stays below $0.28.
Ripple price staged a shallow recovery from the recent dip. The two-day recovery, unfortunately, failed to gain ground above critical levels at $0.27 and $0.28 respectively. The situation has left investor disgruntled with some blaming the company for flooding the market with the quarterly sales.
On the other hand, Ripple maintains that sales are important for network operations and building the ecosystem. The CEO Brad Garlinghouse said that sales had been reduced and XRP’s inflation is trailing that of Bitcoin and Ether.
As mentioned, bullish price action hit a snag during the recovery precisely at the confluence formed by the trendline resistance at the 100 Simple Moving Average (SMA) 4-hour. The rejection has seen an increase in the bear activity as support areas at $0.2550 and $0.2500 continue to fill the heat.
The current technical picture is relatively bearish according to the trends of the applied indicators. The Relative Strength Index (RSI) is gradually sloping south from levels above 60. If the drop continues, XRP bears are likely to increase their positions which could push the price below $0.2500 support.
On the upside, the only way to rise above the critical levels at $0.27 and $0.28 is for XRP to blast its way out of the short-term channel. Trading above $0.27 and $0.28 will definitely revive investor interest in the asset.
XRP/USD 4-hour chart
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