- XRP/USD has recovered from the intraday low amid the improved market sentiments.
- A strong resistance may limit long-term growth at $0.31.
Ripple’s XRP regained ground after a severe sell-off to $0.2400 during early Asian hours on Friday. Currently, XRP/USD is changing hands at $0.2640, having gained over 7% since the start of the day. Despite the recovery, the coin is still 2% lower from this time on Thursday. Ripple now takes fourth place in the global cryptocurrency market rating, with the current market capitalization of $11.8 billion. The coin’s average daily trading volume has exceeded $2 billion for the first time since August 19.
XRP/USD: The technical picture
RIpple’s XRP managed to rebound from the critical support level of $0.2400 and regained some ground. But the long-term technical picture implies that the token is not out of the woods yet. Let’s have a closer look at what may be in store for XRP.
On a weekly chart, the price is moving in a channel, limited by SMA100 (currently at $0.2895) on the upside and SMA50 (presently at $0.2300) on the downside. While the price stopped short of the above-said channel support area, the further recovery may be limited as a few technical indicators are sending bearish signals. First of all, both SMAs point downwards, which creates a bearish price channel. The RSI on a weekly chart has also reverted from overbought territory and pointed to the South, which confirms the growing bearish potential in the long run.
A sustainable move above $$0.31 is needed to improve the technical picture and set the bullish ball rolling for XRP. This resistance area has been tested trice, and each time the bulls backed off.
XRP/USD weekly chart
On a daily chart, the price recovery is capped by SMA50 at $0.266. This technical line was tested as support on several occasions late in August; now, it has been verified as a resistance. Once it is out of the way, the upside is likely to gain traction with the next focus on the above-mentioned congestion area of $0.31, followed by the recent XRP’s recovery high on approach to $0.32.
A failure to settle above the daily SMA50 will increase the downside pressure and bring the above-mentioned $0.23 into focus. This barrier is also reinforced by the SMA100 on a daily chart.
XRP/USD daily chart
The intraday charts say that XRP may continue the recovery as the 4-hour RSI has reversed from oversold territory and now points upwards. However, a cluster of the resistance levels above the current price may slow discourage the bulls and slow down the momentum. The 4-hour SMA50 at $0.275 creates the first barrier, which is closely followed by SMA100 at $0.28 and SMA200 on approach to $0.29. However, the critical resistance is still located at $0.31.
XRP/USD 4-hour chart
To conclude: XRP/USD may proceed with the short-term recovery; however, in the long-run, the price is still vulnerable to losses as long as it stays below the critical resistance of $0.31.