Ripple price analysis: XRP/USD upside capped at $0.55 as the global cryptocurrency recovery fizzles out
- The short-term picture is positive as long as XRP stays above $0.51.
- Ripple has potential but misses the chance to realize it.
Ripple is somewhat undervalued from the longer-term perspective as the cryptocurrency lost over 70% since the beginning of the year without clear fundamental reasons for the massive sell-off. This may lead to a more pronounced rebound, once the cryptocurrency market starts recovering from recent lows.
Ripple Network boasts about numerous partnership deals with payment operators, big banks, and financial institutions especially in the emerging markets, but the crypto players mostly don't care. The market is driven by global catalysts and closely correlated to Bitcoin movements. It means that Ripple has good upside potential, but it won't have a chance to realize it until the global sentiment shift takes place.
Ripple technical picture
XRP/USD is trading at $0.5316 as of the time of writing with local bottom created at $0.5250. The intraday picture is bullish as long as the price stays above 50-SMA (hourly interval) at $0.5100, while a sustained move below will add selling pressure and push XRP towards critical $0.5000 handle. On the upside, the resistance is seen at $0.5500, that's where the recovery stalled on Tuesday. Once it is cleared, the coin will have a chance to get to the $0.60 level.
Author
Tanya Abrosimova
Independent Analyst
