Ripple struggles to hold above $0.4, waits for the next catalyst

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  • The correction from 2019 highs finds support near $0.35.
  • Ripple remains directionless in the near-term.

Following last week’s impressive rally that lifted Ripple to its highest level of 2019 near $0.47, the XRP/USD pair staged a 3-day-long correction and slumped to $0.36 area before going into a consolidation stage this week. After closing the previous day modestly lower, the pair’s trading range narrowed on Tuesday as it failed to preserve its momentum above the $0.40 handle. As of writing, the pair was virtually unchanged on a daily basis at $0.3990.

Investors seem to be staying on the sidelines while trying to figure out whether the latest upsurge witnessed in major cryptocurrencies is a sign pointing at the beginning of a protracted uptrend. 

Meanwhile, Ripple’s total market capitalization, which rose to $20 billion last week, remains steady near $16 billion according to the latest available data on coinmarketcap.com, confirming the subdued market action.

The 38.2% Fibonacci retracement of the uptrend that kicked off on May 10 and came to an end 6 days later forms a critical resistance at $0.4. Above that level, $0.4350 (Fibonacci 23.6%) and $0.4785 (daily high/2019 high) are located as the next hurdles. On the other hand, $0.3650 (Fibonacci 61.8%/May 17, May 18 low) could be seen as the first support ahead of $0.3390 (50-DMA).

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