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Ripple Price Analysis: XRP/USD reached the inflection point at $0.23

  • 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

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

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.

Author

Tanya Abrosimova

Tanya Abrosimova

Independent Analyst

 

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