Ripple Price Analysis: XRP/USD capitalizes on the global cryptocurrency bulls' run

Ripple's XRP, now the 3d largest digital asset with the current market value of $10.1 billion has gained over 7% in recent 24 hours. The coin touched the highest level of 2020 at $0.244 on Tuesday and retreated to $0.2323 by the time of writing. The coin has been moving in sync with the global cryptocurrency market, driven by a strong wave of bullish sentiments. 

XRP's status is not clear

The Chairman of the US Commodity Futures Trading Commission (CFTC) Heath Tarbert thinks that it is not clear whether XRP is a security. The Agency has been working with the US Securities and Exchange Commission (SEC) to figure out the status of Ripple's token. Notably, the head of CFTC has now doubts as to the status of Ethereum, which is regarded as a commodity. 

Meanwhile, Ripple Labs is often accused of earning from XRP sales to retain investors: Ripple executives deny the claims saying that they sell token for negligible amounts compared to other sources of funding.

XRP/USD: technical picture

XRP/USD bottomed at $0.2259 during early Asian hours and recovered to the area above $0.2300 by the time of writing. While the coin is still below the recent highs, a sustainable move above $0.2200 the previous recovery high of $0.2250 has improved the short-term technical picture. The crucial support area is created by a combination of SMA50 1-hour and the lower line of 1-hour Bollinger Band on approach to the above-said psychological $0.2200. If it is broken, the sell-off may be extended towards $0.2130 (SMA200 1-hour).

From the longer-term point of view, strong support is created by SMA50 daily at $0.2080 followed by the middle line of the daily Bollinger Band at $0.2045.

On the upside, the key barrier is created by SMA100 daily currently at $0.2430. This resistance area has been validated twice, which means that the bulls will have a hard time with it. Once it is out of the way, the upside is likely to gain traction with the next focus on psychological $0.2500. The ultimate resistance comes at $0.2680 (SMA200 daily).

XRP/USD, daily chart