Ripple price analysis: XRP/USD upside capped at $0.55 as the global cryptocurrency recovery fizzles out
|- The short-term picture is positive as long as XRP stays above $0.51.
- Ripple has potential but misses the chance to realize it.
Ripple is somewhat undervalued from the longer-term perspective as the cryptocurrency lost over 70% since the beginning of the year without clear fundamental reasons for the massive sell-off. This may lead to a more pronounced rebound, once the cryptocurrency market starts recovering from recent lows.
Ripple Network boasts about numerous partnership deals with payment operators, big banks, and financial institutions especially in the emerging markets, but the crypto players mostly don't care. The market is driven by global catalysts and closely correlated to Bitcoin movements. It means that Ripple has good upside potential, but it won't have a chance to realize it until the global sentiment shift takes place.
Ripple technical picture
XRP/USD is trading at $0.5316 as of the time of writing with local bottom created at $0.5250. The intraday picture is bullish as long as the price stays above 50-SMA (hourly interval) at $0.5100, while a sustained move below will add selling pressure and push XRP towards critical $0.5000 handle. On the upside, the resistance is seen at $0.5500, that's where the recovery stalled on Tuesday. Once it is cleared, the coin will have a chance to get to the $0.60 level.
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.