- XRP/USD has been losing ground since the beginning of the week.
- A move above $0.40 is needed to mitigate bearish pressure.
Ripple’s XRP has lost some ground, extending Monday’s decline. The coin dipped below $0.40 handle to trade at $0.3935 at the time ow writing low. XRP/USD has lost 2% of its value from this time on Monday and nearly 1.5% as compared to the beginning of the Asian session. The third largest coin with the current market value of $16.6 billion has headed to the South as a sustainable move below $0.40 handle bodes ill for the short-term bulls.
Ripple’s technical picture
XRP/USD touched $0.4715 during the previous week only to retreat towards $0.39 on Tuesday. The price tested the critical support at $0.38 (SMA50 weekly) on Monday; however, a keen buying interest located around this barrier helped to stop the sell-off and initiated an upside correction. Once this area is cleared, the downside is likely to gain traction, exposing $0.3470 barrier (DMA200). It is followed by $0.3350 (DMA50) and psychological $0.30.
On the upside, we will need to see a strong recovery above psychological $0.40 strengthened by 38.2% Fibo retracement to mitigate the initial bearish pressure and improve the short-term picture. The next resistance comes at $0.4180 (Monday’s high) and $0.43 with Sunday’s high and 23.6% Fibo retracement located on approach.
XRP/USD, daily chart