Ripple price analysis: XRP/USD tests waters below $0.40
|- XRP/USD has lost over 7.5% of its value in recent 24 hours.
- The critical support is created by 23.6% Fibo at $0.40.
Ripple’s XRP dropped from Monday’s high of $0.4646 to $0.3949 on Tuesday morning amid sharp sell-off on the cryptocurrency market. While the coin managed to recover to $0.4070 by the time of writing, it is still more than 7.6% on a day-to-day basis.
The third largest digital asset with the current market capitalization of $17.6 billion has been moving in line with the global short-term bearish sentiments on the market. XRP is most actively traded on HitBTC against USDT and BTC with an average daily trading volume of $2.6 billion.
XRP’s technical picture
Looking technically, XRP/USD broke below SMA100 (Simple Moving Average) on the 4-hour chart, currently at $04120. This development has deteriorated the intraday technical picture and brought psychological $0.4000 back into focus. This area is likely to attract new buyers and serve as a jumping-off ground for the recovery.
On the upside, the local resistance is created by the above-said SMA100. Once it is cleared, the recovery is likely to gain traction with the next focus on 23.6% Fibo retracement at $0.4270 and SMA50 (4-hour) coupled with SMA200 (1-hour) at $0.4350. Meanwhile, SMA50 (1-hour) on approach to $0.44 may limit the upside for the time being.
XRP/USD, 4-hour chart
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