- Ripple contains losses above $0.1750, giving way for a shallow reaction that tested $0.2000.
- XRP/USD downside is supported by the Bollinger Band middle curve and the 50 SMA.
Ripple recently tested and formed a new support at $0.1750 due to the increasing selling pressure on the market. The support turned resistance at $0.20 tried but failed to contain the declines leading the extended spiral below the tentative support areas at $0.19 and $0.18.
The recovery witnessed across the market on Tuesday was a mere reaction to Bitcoin’s unexpected return into the $7,000 zone. The shallow gains in leading altcoins such as Ripple and Ethereum suggest the correlation to Bitcoin price action is still quite strong.
Meanwhile, XRP is trading at $0.1919 after a 2.63% loss on the day. The immediate downside is protected by the 50 SMA in the hourly range. The price is above the Bollinger Band 1-hour middle curve, turning $0.1900 into the near term key support.
The Relative Strength Index (RSI) retreat after brushing shoulders with 70 is taking a breather at the average. Continued sideways movement means that XRP could sustains a ranging trend between $0.1900 and $0.1950.
On the upside, $0.20 is still unconquered while the 100 SMA at $0.20306 must come down to open the door for gains toward the $0.220 supply zone. Ripple bulls must also not lose sight of $0.30, which will keep motivating them to remain in action.
XRP/USD 1-hour chart
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