Ripple Price Analysis: Why XRP/USD bulls must defend $0.20 support at all costs?

Ripple retreats from recent highs at $0.225 but the buyers defend the key support at $0.20.
The ability to retest $0.23 resistance will depend on the magnitude of the bounce from the key support at $0.20.

Ripple is currently gaining traction after defending the crucial support at $0.20. The reversal from the recent high at $0.225 did not come by surprise. However, investors would rather see an upward momentum considering the downtrend experienced in the last quarter of 2019.

The existing trend is strongly bearish amid the shrinking volatility but Ripple is trading 0.51% higher on the day. The price sits above the 50 SMA on the 4-hour chart currently at $0.20. The longer-term 100 SMA at $0.1963 is in a position to offer additional support if declines break the support at $0.20.

Technically, the trend is likely to succumb to the jabs thrown by the bears. The MACD, for instance, is moving towards the mean line, although it is still holding ground in the positive region. The visible bearish cross signals the increasing grip of the sellers.

Therefore, the best move for the buyers is to increase entries in such a way that support at $0.20 is defended at all costs. At the same time, push for recovery above $0.21 and be careful not to lose the focus on $0.30.

XRP/USD 4-hour chart

Share: Cryptos feed

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.