Tanya Abrosimova
Independent Analyst
- Ripple's token has reached an important support area.
- The recovery above $0.27 will mitigate the bearish pressure.
Ripple's XRP is changing hands at $0.2323. The fourth-largest digital asset has lost over 2% since the start of the day and 8% on a day-to-day basis. The bearish sentiments triggered by BTC sell-off and panic in a DeFi sector. However, several technical factors increased the pressure on XRP and brought it to the inflection point. Let's have a closer look at what may be in store for the Ripple's token.
XRP/USD: The technical picture
On a weekly chart, XRP/USD has been moving inside a downward-looking channel created by the SMA100 (currently at $0.2874) and SMA50 (now at $0.2287). The price made several attempts to engineer the bullish breakthrough, but all of them failed. As a result, XRP/USD dropped to the critical support area of $0.23, reinforced by the above-mentioned SMA50. A sustainable move below this level will increase the bearish pressure with the next support at $0.2140. This barrier is created by the broken downside trendline from June 6 high. A move below this area will signal that the upside correction is over.
XRP/USD weekly chart
-637349791905648629.png)
On the daily chart, the technical picture confirms the importance of the above-said support areas as $0.23 is reinforced by the daily SMA100. At the same time, the broken trendline coincides with the SMA200 and the upper boundary of the previous consolidation channel. On the upside, the local resistance comes at $0.2680 (the daily SMA50). Once it is out of the way, the upside will gain traction with the next focus on $0.2874 and $0.30.
XRP/USD daily chart
-637349792120503993.png)
To conclude: XRP/USD reached the inflection point at $0.23. If this barrier is broken, the sell-off may start snowballing and bring the price to the broken downside trendline at $0.2140. On the other hand, a move above $0.2680-$0.27 will elevate the immediate bearish pressure and allow for an extended recovery towards $0.30.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Ripple wipes out weekly gains, experts comment on role of Ripple stablecoin
Ripple declined to $0.52 on Thursday, erasing all gains registered earlier this week. Ripple SVP Eric van Miltenburg’s comments on the firm’s stablecoin, and how it is expected to benefit the XRP Ledger and native token XRP have raised concerns among crypto experts.
Hedera HBAR slips nearly 10% after air is cleared on mistaken link with giant BlackRock
HBAR price is down nearly 10% on Thursday, partly erasing gains inspired by the misinterpreted link with BlackRock. Despite the recent correction, Hedera’s price is up 44% in the past seven days.
The reason behind Bonk’s 105% rise and if you should buy now Premium
Bonk price has shot up 105% in the past five weeks. A retracement into $0.0000216 or the $0.0000152 to $0.0000186 imbalance would be a good buying opportunity. Patient investors can expect double-digit gains from BONK that could extend up to 70%.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price. Coupled with broader market gloom, INJ token’s doomed days may not be over yet.
Bitcoin: BTC post-halving rally could be partially priced in Premium
Bitcoin (BTC) price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days?