Ripple Price Analysis: XRP/USD short-term bulls may lose hope if daily SMA gives in

Ripple's XRP is changing hands at $0.1973. The fourth-largest digital coin has stayed mostly unchanged both on a day-to-day basis and since the beginning of Wednesday after a sharp sell-off below the psychological $0.2000. XRP has the current market value of $8.7 billion and an average daily trading volume of $1.1 billion. XRP hit the recovery high at $0.2117 on July 9 and has been drifting lower ever since. 

XRP/USD: Technical picture

Form the technical point of view, XRP/USD recovery is limited by daily SMA200 (currently at $0.2100). The price ventured a move above this barrier but retreated back below $0.2000. Now the strong support is created by daily SMA100 at $0.1960 and daily SMA50 at $0.1926. The latter level was verified on several occasions during the recent week. If it is cleared, the sell-off may be extended to $0.1900, where new buyers are likely to join the market and trigger an upside correction. 

On the upside,  a sustainable move above $0.2000 is needed to mitigate the bearish pressure and improve the technical picture. As we have previously reported, this is a critical barrier for the coin in the short run. It is reinforced by the intraday high and a combination of 1-hour SMA100 and the upper line of the 1-hour Bollinger Band. Once it is out of the way, the upside is likely to gain traction with the next focus on the ultimate bullish target of $0.2100.

A sustainable move above this area will open up the way towards the recent recovery high at $0.2357 (April 30). This barrier separates us from the ultimate bullish goal of $0.2500. 

XRP/USD daily chart