Ripple goes into consolidation after renewing 2019 highs near $0.45
- XRP gains more than 30% since Monday.
- Technical reading point to a technical correction.
- Fundamental developments fuel XRP's rally.
Ripple's unstoppable rally continued for the third straight day on Wednesday and brought the total gains in USD terms over 30% since the start of the week. After touching its highest level since December at $0.4455, however, XRP went into a consolidation phase and staged a technical correction. As of writing, the XRP/USD pair was up 5.2% on a daily basis at $0.4265.
In addition to the positive sentiment surrounding major cryptocurrencies, some recent fundamental developments provided an additional boost to XRP.
Germany's second-largest stock exchange, Boerse Stuttgart, on Monday said that it started to introduce LTC and XRP ETN's. Furthermore, popular cryptocurrency exchange Coinbase announced XRP support for NY users earlier this week.
Looking at the daily chart, the fact that the Relative Strength Index (RSI) is at its highest level since September suggests that the pair is likely to continue to correct its impressive rally before a possible leg up. On the downside, $0.4050/$0.40 area (daily low/psychological level) could be seen as critical support. On the other hand, a daily close above $0.45 could open the door for the next significant target of $0.5.
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
