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XRP/USD Price Update:
- XRP is trading inside a consolidation phase but aims for a clear direction in the short-term.
- Bears currently in control but a reversal can come in favour of the bullish bias.
XRP/USD Price Update: Capped by 0.2323 on a short-term basis
Ripple (XRP) has been trading inside a consolidation phase at the start of the month and is now hovering around the 0.2190 neighbourhood and looking forward to a clear direction in the short term.
The cryptocurrency was hit by a bearish wave after testing the resistance level of 0.2323, where a critical barrier is located. It should be noted that a rebound happened at the end of October above the 0.2059 level. Also, the 50 SMA at the 4H chart continues to cap further gains in the XRP/USD pair.
This should favour the bearish bias in the short term. Also, traders should take into consideration the bullish trend line broken in November.
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Bears currently in control
Now, it looks like a breakout below the 0.2059 level could be feasible to extend the bearish bias towards 0.1882 accelerating the bears’ force so far. Once such a support area gives up in favour of the bearish bias, the focus will be on the 0.1685 level. Which should strengthen the downside and signal further weakness in a mid-term outlook.
The preferred scenario points to further declines as well, as there is a death cross of the 50 and 200 SMAs in the mentioned timeframe.
Targeting the 200 SMA in the 4H chart?
In an upside view, Ripple could attempt a breakout of the 0.2323 level, and if that happens, then a rally could target the 0.2512 level. Which should coincide with the 200 SMA, adding strength to such resistance.
After that level is cleared out, the focus will be on the 0.2661 area, ahead of the 0.2820 critical zone. Technical oscillators are in the red waters, with the RSI indicator staying below the 50 level, while momentum is below zero, but pointing upwards.
Once RSI moves above the 50 handle, and if momentum keeps signalling to the upside, then the bulls will take control.