- XRP/USD broke from a narrow range to the downside.
- Losses are contained so far, consolidation ahead.
XRP/USD is changing hands at $0.4700, losing over 18% of its value in recent 24 hours after a glorious week that took it as high as $0.7663 on Friday. The hopes of those who dreamt of seeing the coin at $1.0 were utterly deceived. XRP/USD is still 70% higher than seven days ago, and while the downside movement still qualifies as a healthy correction after a strong rally, the upside momentum has been lost for now. A sustainable move below $0.50 handle signals that recovery is over and the coin is about to enter the consolidation phase at best.
Currently, XRP/USD is down 4% since the beginning of Tuesday, and nearly 18% lower on a day-to-day basis with market cap registered at $18.8B, down from the recent peak of $22.9B.
XRP’s technical picture
Looking technically, XRP/USD broke below DMA200 (currently at $0.5362) and dipped to $0.4508 during early Asian hours. However, the coin managed to regain some ground and settle marginally above $0.4700. If this momentum proves to be sustainable, the coin is likely to spend some time in a range limited by $0.50 on the upside and $0.4500 on the downside. The above-said support is created by Pivot Point 1-month Resistance 1 and a Bollinger Band 15 – lower. Once it is cleared, the sell-off may be extended towards $0.4360 (SMA50, 4-hour) and to $0.4000.
On the upside, we need to see a sustainable recovery above $0.50, before we can proceed to another strong resistance of $0.5200, created by 38.2% Fibo retracement daily and SMA5 (4-hour chart).
XRP/USD, 4-hour chart
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