- XRP/USD has recovered recent lows, but upside momentum is fading away.
- Bulls need to retake $0.40 to get a chance to test the channel resistance.
XRP/USD recovered from the Sunday’s low at $0.3141 to trade at $0.3184 by the time of writing. However, the positive momentum has faded away on approach to $0.3200 handle, which bodes ill with further recovery.
Ripple’s XRP is now the second largest digital asset with manner value of $13.2B and an average daily trading volume $406M. The coin is moving in lockstep with broader cryptocurrency market, pressured down by generally bearish sentiments. As there is little in terms of fundamental news that may influence XRP/USD momentum, the coin is driven by technical factor and market sentiments.
XRP’s technical picture
From the long-term perspective, XRP/USD has been moving within the downside channel since the end of September. At this stage, the price stays in the middle of the range kept by DMA50 (currently at $0.3460). A sustainable move higher is a prerequisite for an extended recovery towards stronger resistance areas created by a confluence of DMA100 and DMA200 around the psychological $0.4000.
While this move will represent 25% growth from the current price, it won’t take us outside the downside trend. The ultimate goal of XRP/USD bulls is $0.4680 – the upper line of the channel.
On the downside, the nearest support lies with Sunday’s low at $0.3140. A sustainable move lower will expose $0.31 and open the way towards psychological $0.30. Once below, the sell-off may be extended towards the lowest level of 2019 ant $0.2815 and to the lower border of the channel at $0.2334.
XRP/USD, the daily chart