Ripple market overview: Chunks of Tuesday gains slashed; XRP/USD fights to defend key support

Ripple was among the biggest daily gainers yesterday with gains more than 7% in a few hours. The incredible gains come after the price climbed above the simple moving averages (SMAs). On stepping above $0.30, the bulls rushed to take their positions, in turn, pulling the price up in three consecutive candlesticks. For the first time since the drop on Thursday last week, Ripple traded close to the resistance at $0.32.

A high was formed at $0.31764 giving for a lower correction that has today tested $0.3060. From this level, the price has reverted to the current value at $0.3084 and is likely to start ranging above the forming support at $0.3080.

According to technical analysis, Ripple’s technical levels are intact, besides the Relative Strength Index (RSI) has begun ranging at 48.14 after recovery from the levels slightly below 30.00. The moving average convergence divergence (MACD) is sloping steadily upwards and could soon cross into the positive area. This means that the trend is still favoring the bulls and as long as the technicals remain strong and positive.

Ripple must correct above $0.3100 in order to come out the bear range between $0.3000 - $0.3100. However, the 50 SMA and the 100 SMA will limit growth above $0.3000. If the price manages to correct past yesterday’s hurdle at $0.031764, the supply zone at $0.3200 will stand in the way on the upward movement towards $0.3300 and $0.3500.