Ripple Price Analysis: XRP bulls exhausted, downside correction ahead

XRP/USD stopped short of the critical barrier $0.1900.
The local support is created by 1-hour SMA50.

Tanya Abrosimova Independent Analyst

XRP/USD has had one of the best days since the end of April. The jumped above $0.1800 and came close to $0.1900 during early Asian hours before retreating to $0.1856 by press time. amid strong bullish sentiments. While the price retreated to $0.1854 by the time of writing. Despite the retreat, the upside momentum remains strong and may result in another attempt to push XRP/USD towards the critical resistance created by $0.1900. Ripple's XRP is the fourth largest digital asset with the current market value of $8.12 billion and an average daily trading volume of $1.35 billion. The coin has gained about 1.3% of its value both on a day-to-day basis and lost 1.7% since the beginning of the day.

XRP/USD: Technical picture

On the intraday chart, XRP/USD tested area below $0.1850 several times, but the short-term buying interest pushed it back. This support may create a short-term floor for the price, however, once it is broken, the sell-off may be extended towards $0.1816 (1-hour SMA50) and to the psychological $0.1800 reinforced 1-hour SMA100. This barrier is likely to slow down the bears and create a condition for another bullish wave.

The RSI on 1-hour chart stays flat on the neutral territory, which means the price may spend some tome close to the current levels; however, we will need to see a new move towards $0.1900 before the bullish momentum fades away and bears manage to regain control.

XRP/USD 1-hour chart

On the upside, a strong resistance is created by $0.1900. This psychological barrier served as strong support in the middle and in the end of June. Moreover, a combination of the daily SMA50 and the upper line of the daily Bollinger Band at $0.1920, makes it a hard nut t crack for the bulls. Once they manage to clear this area, daily SMA100 at $0.1950 will come into focus.