Ripple price analysis: XRP/USD hovers at $0.4100, further upside limited so far

XRP/USD retreated from the intraday high of $0.4200 to trade marginally above $0.4100. The third largest coin with the current market capitalization of $17 billion has gained over 7% in recent 24 hours; however, week-on-week gains have not exceeded 3%. 

Ripple’s XRP has been lagging recently despite a series of positive fundamental announcements. Thus, Thailand’s commercial bank announced that it considered using Ripple’s technology to perform cross-border payments, but the market reaction has been muted so far.

Read more about the announcement here.

Ripple’s technical picture

The strong support for the coin is created by psychological $0.40, which coincides with 38.2% Fibo retracement level. Once it is broken, the sell-off may continue towards $0.3918 (SMA50, 4-hour) and $0.3800 (SMA100 4-hour), closely followed by $0.3780 (50% Fibo retracement). Meanwhile, a significant barrier is seen on approach to $0.3600 as this area stopped the decline twice since the middle of May.

On the upside, a sustainable move above $0.4200 will open up the way to May 19 high $0.4290. This barrier is strengthened by 23.6% Fibo retracement located on approach and followed by psychological $0.4300. This area may slow down the recovery and trigger a short-term technical correction before another bullish wave.

XRP/USD, 4-hour chart