Ripple price analysis: XRP/USD gains ground above $0.40, upside limited
- Ripple's coin has been moving down in sync with the market.
- The upside momentum is fading away on approach to strong resistance.
XRP/USD is hovering at $0.4060, having recovered from Monday's low of $0.3934. The third largest coin with the current market capitalization of $17.2 billion managed to settle above the critical $0.40 handle, but the upside seems to be limited due to weak trading activity. XRP/USD has gained over 2.5% of its value since this time on Monday, moving in sync with the rest of the market.
Looking technically, the initial barrier is created by psychological $0.50, strengthened by 38.2% Fibo retracement for the downside move from $0.4700. Once it is cleared, the sell-off is likely to gain traction with the next focus on $0.3950 (Simple Moving Average, SMA200 1-hour, SMA50 4-hour) and $0.3920 (SMA100 1-hour).
The next support is created by 50.0% Fibo retracement at $0.3780. This area limited the downside at the beginning of July. Buying interest located around this area might create a strong upside impulse and push the price back towards $0.40 handle.
On the upside, XRP bulls set their eyes at $0.4100, followed by $0.4200 barrier strengthened by a confluence of SMA100 and SMA200 4-hour located on approach. A sustainable move above this area will open up the way towards the next bullish target of $0.4270 (23.6% Fibo retracement).
XRP/USD, 4-hour
Author
Tanya Abrosimova
Independent Analyst
