Ripple Price Analysis: XRP/USD retreats from $0.2300 amid technical correction
|- XRP/USD reversed the gains of the previous day amid technical correction.
- The critical support is created by 200-day SMA at $0.2100.
Ripple's XRP came close to $0.2300 on Monday and retreated to $0.2225 by press time. The coin has reached the highest level since the end of April after a strong move above 200-day SMA located on the approach to $0.2100. This technical development increased the bullish potential of the coin and pushed it outside the narrow range that dominated XRP trading for nearly two months.
Ripple ousted Tether from the third place in the global cryptocurrency market rating as its capitalization exceeded $10 billion, while its average daily trading jumped to $1.4 billion.
XRP/USD has gained over 2.5% on a day-to-day basis and lost 1% of its value since the beginning of Tuesday. Its market capitalization settled at $9.97 billion, while its average daily trading volume is registered at $1.72 billion.
XRP/USD: Technical picture
On the daily charts, the RSI has started reversing to the downside from an overbought territory, which means the coin may be vulnerable to the downside correction. However, the above-mentioned 200-day SMA should provide strong support and attract new buyers to the market. Once it is out of the way, the sell-off will gain traction with the next focus on psychological $0.2000.
On the upside, the first resistance is created by a combination of weekly SMA50 and the upper line of the weekly Bollinger Band at $0.2270, A sustainable move above this area will open up the way to the intraday high of $0.2295 and $0.2300.
XRP/USD daily chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.