Tanya Abrosimova
Independent Analyst
- Ripple has retreated from the recent high reached don Wednesday.
- XRP/USD needs to regain ground above $0.22 to mitigate the bearish pressure.
Ripple's XRP hit $0.2263 on Wednesday amid strong rally on the cryptocurrency market. However, the upside momentum proved to be unsustainable as the coin retreated below $0.2200 and tested $0.2124 low during early Asian hours. At the time of writing, XRP/USD is changing hands at $0.2168, with nearly 1% of gains on a day-to-day basis.
Technical picture for XRP/USD.
Looking technically, a sustainable move above $0.2200-$0.2230 area is still needed to mitigate the bearish sentiments. However, a confluence of technical indicators, including SMA50 (Simple Moving Average) on 1-hour and 4-hour charts and the upper line of 1-hour Bollinger Band, will make it harder to push through the resistance area. Once it is out of the way, the recovery may be extended towards $0.2300 reinforced by SMA100 4-hour.
On the downside, strong support is created by $0.2100. The lower line of 4-hour Bollinger Band and the recent low (December 4) might serve as a buffer for the time being. A sustainable move below this handle will increase the bearish pressure and result in an extended sell-off towards November 25 low at $0.2014.
XRP/USD, 1-hour chart
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