- XRP/USD recovers above $0.2000, but the upside momentum is weak.
- Traders expect a deeper decline in the long run.
Ripple’s XRP is changing hands at $0.2000, having recovered from Wednesday’s low of $0.1973. The third-largest digital asset with the current market capitalization is $8.8 billion and an average daily trading volume of $1.7 billion has lost nearly 2% of its value in the recent 24 hours amid major sell-off on the cryptocurrency market. The crash was triggered by the speculations that someone, probably Bitcoin’s creator, moved 50 BTC.
XRP under pressure
Ripple’s coin has lost over 90% of its value since the beginning of the year. Despite the significant decline, some experts believe that the bearish potential has not been exhausted yet. According to a popular crypto trader il Capo Of Crypto (@CryptoCapo_), may proceed with the decline. He shared charts where he compared XRP another altcoin, Wave that shows similar momentum. If the extrapolation is correct, the cryptocurrency may drop below $0.10.
XRP/US: Technical picture
On the intraday chart, XRP/USD is supported by a psychological $0.2000. This barrier stopped the sell-off during early Asian hours and may become the backstop for the coin in the short run. If it is broken, the downside momentum may gain traction with the next focus on $0.1970, which is the lowers level of the week.
On the upside, the initial resistance is created by $0.2030. This barrier stopped the recovery from the recent sell-off. Also, it served as a strong barrier that limited XRP upside momentum in the beginning of May. A combination of 1-hour SMA50 and SMA100 located above this level makes it even harder for the short-term XRP bulls.
Once it is out of the way, the upside is likely to gain traction with the next focus on $0.2060 (an upper boundary of Wednesday’s consolidation channel), and the recent recovery high at $0.2080. Then comes $0.2100 reinforced by the daily SMA100 and the middle line of the daily Bollinger Band.
XRP/USD 1-hour chart
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