Ripple price analysis: XRP/USD feels the pain, down 3.6% on the day

• XRP under pressure amid global cryptocurrency sell-off.
• The key resistance $0.5600 is still out of reach.

Ripple, the third largest coin by market value, is changing hands at $0.5283, off Tuesday’s high at $0.5540. The coin is 3.6% lower since the beginning of the day and down 1.37% on daily basis. Ripple’s market value is estimated as  $20.7B, with trading volumes $292B, up from Monday’s $177M. XRP trading is most active against BTC, trading at Bitfinex and Bitstamp.

Ripple’s momentum is in sync with general cryptocurrency market sentiments, influenced by dire Bithumb news. The coin is down over 73% since the beginning of 2018, but its year-on-year gains are still solid – over 280%. XRP is vulnerable to further losses due to lawsuits that accuse the company behind the coin of illegal securities sales.

Ripple technical picture

XRP/USD is moving within a clear bearish channel with $0.5600 (which is 78.6% Fibo retracement level) creating a critical resistance. The coin needs to settle above this level to get a chance for an extended recovery, however, it is still out of reach. The local resistance is created by 200-SMA (hourly chart) at $0.5426. On the downside, a sustainable movement below $0.5100, will open the way to the recent low at $0.5020.  

XRP/USD, the hourly chart