Ripple Price Analysis: XRP/USD retreats from $0.2300 amid technical correction

Ripple's XRP came close to $0.2300 on Monday and retreated to $0.2225 by press time.  The coin has reached the highest level since the end of April after a strong move above 200-day SMA located on the approach to $0.2100. This technical development increased the bullish potential of the coin and pushed it outside the narrow range that dominated XRP trading for nearly two months. 

Ripple ousted Tether from the third place in the global cryptocurrency market rating as its capitalization exceeded $10 billion, while its average daily trading jumped to $1.4 billion.

XRP/USD has gained over 2.5% on a day-to-day basis and lost 1% of its value since the beginning of Tuesday. Its market capitalization settled at $9.97 billion, while its average daily trading volume is registered at $1.72 billion.

XRP/USD: Technical picture

On the daily charts, the RSI has started reversing to the downside from an overbought territory, which means the coin may be vulnerable to the downside correction. However, the above-mentioned 200-day SMA should provide strong support and attract new buyers to the market. Once it is out of the way, the sell-off will gain traction with the next focus on psychological $0.2000.

On the upside, the first resistance is created by a combination of weekly SMA50 and the upper line of the weekly Bollinger Band at $0.2270, A sustainable move above this area will open up the way to the intraday high of $0.2295 and $0.2300.  

XRP/USD daily chart