Ripple Price Analysis: XRP/USD drops like a stone, settles below $0.2200

XRP/USD reversed the gains of the previous day.
In the long-run, the coin continues moving within a bullish trend.

Tanya Abrosimova Independent Analyst

Ripple's XRP dropped from the intraday high $0.2357 to $0.2100. While the price has recovered to $0.2180 by press time, the XRP virtually erased all the gains of the previous day. From the technical point of view, XRP/USD retains the bullish bias as long as it stays above $0.2030-$0.2000. This former resistance area that includes 38.2% Fibo retracement for the downside move from February 2020 high now serves as strong support.

On the daily chart, XRP/USD has returned to the area above SMA100 (currently at $0.2170), which is a positive signal for the bulls. However, we will need to see a sustainable move above $0,2280 (daily SMA200) to get the recovery back on track and allow for another attempt at $0.2350. Otherwise, the price may enter a consolidation phase in the current range.

XRP/USD daily chart

On the intraday chart, XRP/USD is trying to move above the local resistance created by 1-hour SMA50. Once it is out of the way, the upside is likely to gain traction with the next focus on the above-mentioned barrier $0.2280, which is also reinforced by the middle line of the 1-hour Bollinger Band. Considering that the RSI on 1-hour chart has reversed to the upside, the recovery scenario looks likely at this stage.