Tanya Abrosimova
Independent Analyst
- Ripple's token has reached an important support area.
- The recovery above $0.27 will mitigate the bearish pressure.
Ripple's XRP is changing hands at $0.2323. The fourth-largest digital asset has lost over 2% since the start of the day and 8% on a day-to-day basis. The bearish sentiments triggered by BTC sell-off and panic in a DeFi sector. However, several technical factors increased the pressure on XRP and brought it to the inflection point. Let's have a closer look at what may be in store for the Ripple's token.
XRP/USD: The technical picture
On a weekly chart, XRP/USD has been moving inside a downward-looking channel created by the SMA100 (currently at $0.2874) and SMA50 (now at $0.2287). The price made several attempts to engineer the bullish breakthrough, but all of them failed. As a result, XRP/USD dropped to the critical support area of $0.23, reinforced by the above-mentioned SMA50. A sustainable move below this level will increase the bearish pressure with the next support at $0.2140. This barrier is created by the broken downside trendline from June 6 high. A move below this area will signal that the upside correction is over.
XRP/USD weekly chart
-637349791905648629.png)
On the daily chart, the technical picture confirms the importance of the above-said support areas as $0.23 is reinforced by the daily SMA100. At the same time, the broken trendline coincides with the SMA200 and the upper boundary of the previous consolidation channel. On the upside, the local resistance comes at $0.2680 (the daily SMA50). Once it is out of the way, the upside will gain traction with the next focus on $0.2874 and $0.30.
XRP/USD daily chart
-637349792120503993.png)
To conclude: XRP/USD reached the inflection point at $0.23. If this barrier is broken, the sell-off may start snowballing and bring the price to the broken downside trendline at $0.2140. On the other hand, a move above $0.2680-$0.27 will elevate the immediate bearish pressure and allow for an extended recovery towards $0.30.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Is Altcoin Season here as Bitcoin reaches a new all-time high?
Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.
Shanghai court confirms legal recognition of crypto ownership
A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.