Tanya Abrosimova
Independent Analyst
- XRP/USD is losing ground after a sharp bullish movement at the beginning of the week.
- The critical support is created by SMA50 daily on approach to $0.2000.
Ripple's XRP retreated from the recent high of $0.2255 to trade at $0.2055 at the time of writing. While the coin is still above pivotal $0.20, the upside momentum is fading away. On a day-to-day basis, XRP/USD is down over 3% as the sell-off is exacerbated by the general reversal on the cryptocurrency market.
Dump followed by the pump?
The Ripple's coin skyrocketed on Monday following the news that Binance Futures added XRP support. While the Malta-based exchange denied the accusations of insider trading ahead of the announcement, some traders noted that Litecoin announcement did not produce the same effect on LTC prices.
Pump or not, XRP is now losing ground and may soon return to the levels that preceded the announcement. If this happens, the speculative nature of the movement will become obvious.
XRP/USD: technical picture
On the daily charts, XRP/USD has returned inside the Bollinger Bands with its middle line at $0.1960 now serves as a major support. A sustainable move below this handle will signal that the recovery attempt is over and thee coin returned to the previous range. The next major support area is located at $0.1850-$0.1840. This area served as a backstop for XRP back in December and at the beginning of January. If it is broken, the sell-off may be extended towards $0.1780 (the lower line of the daily Bollinger Band) and $0.1752 (December 18 low).
On the upside, a sustainable move above $0.2100 is needed to mitigate the initial bearish pressure. This resistance is reinforced by SMA50 daily. Once it is out of the way, the upside is likely to gain traction with the next focus on $0.2140 ( the upper line of 4-hour Bollinger Band and $0.2200 followed by the recent high of $0.2255.
XRP/USD daily chart
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