- XRP/USD settles above $0.34.
- Momentum indicators imply a correction from overbought territory.
XRP/USD is changing hands at $0.3424 after a short-lived spike to $0.3580 during early Asian hours. Ripple’s coin has gained nearly 16% in the recent 24 hours and over 3% since the beginning of Tuesday trading. The second largest coin with a market value of $13.6B has registered a strong growth of average daily trading volumes from $313B on Sunday to $720B on Tuesday morning.
Ripple’s technical picture
On the 4-hour chart, XRP/USD jumped above both SMA50 and SMA100, creating a short-term bullish setup. Looking technically,
there is very little in terms of resistance levels above the current price until $0.3800. This strong hurdle, strengthened by 23.6% Fibo retracement level (monthly) is followed by $0.3900 (SMA200, 4-hour) and ultimate $0.40 (DMA50).
However, it is worth noting that the Relative Strength Index is reversing down from the overbought territory, which implies a downside correction after a strong growth.
On the downside, the price needs to stay above $0.3320 (SMA100, 4-hour) to maintain the short-term bullish setup. Once it is cleared, the sell-off may be extended towards $0.3200 and critical $0.30 strengthened by SMA50 (4-hour).
XRP/USD, 4-hour chart