Ripple embraces support at $0.28 but recovery stalls marginally above $0.30.
XRP/USD is in the middle of a reversal from the resistance at $0.28; lower leg eyes $0.28 and $0.27 support areas.
Ripple like Bitcoin scaled several barriers after this week after bulls built on the consolidation experience last week above the key support at $0.27. The recovery movement saw XRP climb above $0.30 and this time it sustained the gains. The leg up extended past $0.32 before the resistance experienced early in August came into the picture.
A reversal on Wednesday affected the majority of cryptoassets including Ripple, Bitcoin and Ethereum. Bitcoin dropped under $12,000 and even refreshed levels slightly above $11,500. Ethereum, on the other hand, slumped from levels above $430 to confirm another support at $405.
Consequently, XRP tanked under $0.30 on hitting the barrier at $0.3250. The bearish leg extended to $0.28 (short term support). Attempts have been staged to clear the resistance at $0.30 but the bearish grip keeps getting stronger.
XRP/USD 1-hour chart
Meanwhile, XRP is trading at $0.2886 at the time of writing. A growing bearish grip is highlighted by the Relative Strength Index (RSI) after changing direction before hitting the average (50). The RSI is currently holding at 40 but could drop lower if the technical picture remains unchanged.
It is clear that Ripple will take a longer time to rise above $0.30. In fact, the support at $0.28 and $0.27 could first be tested before buyers begin to build momentum for a massive breakout like the one on Tuesday. The break above the descending channel failed to materialize as XRP has lost steam marginally above $0.29 culminating in the ongoing return into the channel is expected as buyers seek formidable support, preferably at $0.27 if not $0.28.
Luke has had a long interest in financial technology, especially cryptocurrency and blockchain. With a Bachelors degree in Journalism and Media, Luke is dedicating his writing skills for the digital currency sphere.He can be contacted at email@example.com