Ripple extends rebound, targets $0.4 heading into the weekend

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  • XRP/USD recovers after finding support near $0.36.
  • Ripple’s market cap rises above $16 billion.

Following its impressive rally witnessed during the first half of May, Ripple staged a deep correction but was able to find support near $0.36. Although it rose to $0.43 last weekend, the XRP/USD pair failed to hold above the $0.4 mark and turned south this week. However, the $0.36 area, once again, formed reliable support and allowed the pair to gain traction.

After adding 2.5% on Thursday, the pair extended its rebound today and was last up 2.8% on the day at $0.3910. With today’s advance, Ripple’s total market capitalization rose to $16.3 billion from $15 billion yesterday.

The lack of fundamental drivers this week allowed the pair to fluctuate within technical levels. The 38.2% Fibonacci retracement of the 7-day long rally that started on May 10 now aligns as the next target for the pair at $0.4. With a decisive break above that level, the pair could turn its attention to $0.4350 (Fibonacci 23.6%) and $0.4785 (2019 high). On the other hand, $0.36 area (Fibonacci 61.8%/May 17, May 18, May 23 low/20-DMA) aligns as crucial support ahead of $0.3390 (50-DMA).

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