- XRP has moved to a significant support level.
- The major resistance is created by DMA100.
XRP/USD traded as high as $0.3473 on Sunday amid strong recovery on the cryptocurrency market. However, the upside proved to be unsustainable as the coin slipped back towards $0.3024 by the time of writing. The third largest digital coin with the market value of $12.5B is trading down nearly 10% on a day-over-day basis amid a sharp rise of trading volumes. An average daily trading volume nearly doubled from $600M on Saturday to over $1B on Monday.
Looking technically, XRP/USD returned to the area below the sloping trend line from November 6, 2018 high at $0.5428. This development bodes ill for XRP’s bulls; however, an essential short-term support at $0.30 remains unbroken. Further XRP momentum depends on its ability to stay above the said psychological level. Once it is cleared, the downside may be extended towards the channel support at $0.2867.
On the upside, the initial hurdle is seen at $0.3100, followed by the trend line currently at $0.3140. A sustainable move higher will take us towards $0.3200-$0.3230 strengthened by a cluster of 1-hour SMA levels and also SMA50, 4hour.
The ultimate resistance comes at $0.3400 with DMA100 located right above this handle. We need to see a move higher to get a chance to retest the recent high at $0.3473 and $0.3500.
XRP/USD, 1H chart
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