- XRP/USD is the worst-performing cryptocurrency out of top-20.
- The coin returns from an overbought territory to trade in line with other digital assets.
XRP/USD is changing hands at $0.5140, off Wednesday’s low reached at $0.5064. The third largest coin by market cap has lost over 8% day-on day basis as a breakthrough below key technical level of $0.5400 (SMA50, 10-hour) increased the downside pressure. XRP’s market capitalization has settled at $20.8B, while an average daily trading volume is registered at $837B, off Tuesday’s $1.3B.
What’s going on
The recent impressive rally of Ripple’s cryptocurrency was initiated by rumors that the coin would be used by large financial institutions within the framework of Ripple’s partnership deals. However, the latest announcement that the company’s xRapid product is going into commercial operation barely had any impact on XRP’s momentum. Moreover, the coin was sold off heavily, demonstrating the fundamental market principle “buy the rumor, sell the fact” in action.
XRPUSD experienced a strong 150% rally in the end of September, so now the coin is correction from heavily overbought conditions and becomes aligned with the rest of the market.
XRP/USD, technical picture
Looking technically, XRP/USD is now supported by $0.5100. Once this area is cleared, the sell-off will extend towards $50.64 (Asian low) and to critical $0.5000. XRP hasn’t been that low since September 26. This area is likely to stop the downside for the time being as fresh buyers may jump in and save the game. However, if it is sustainably broken, XRP/USD may drop to $0.4838 (SMA100, 4-hour chart). On the upside, the immediate resistance is seen at $0.5200, while $0.5400 with SMA50, 4-hour on approach is likely to stop the recovery attempts.
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