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Ripple (XRP/USD) on its way to resuming the bullish bias above 0.3200
- After a bullish crossover with the 50 and 200 SMAs at the 4H Chart, the bulls take control of the situation.
- The pair is currently recovering from the lows of February shifting the focus towards the 0.3635 region.
The XRP/USD pair is gaining fresh impetus across the board, consolidating its structure above the 0.3000 handle. Bulls have control of the situation after a bullish crossover with the 50 and 200 SMAs at the 4H chart. Signaling further rallies that have materialized since the start of the year.
Furthermore, at the end of January, Ripple’s cryptocurrency retreated to test the bigger moving average and then found dynamic support. It has also been following a bullish structure guided by the smaller MA.
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0.3500 On the cards
During the leg higher, the altcoin found a strong barrier around the 0.3366 level. Where sellers appeared and took control over the short term.
The pair seems to be in recovery mode since the lows of mid-February and now it can recover towards the 0.3366 area. Once it gives up in favor of the buyers, the focus will shift towards the 0.3635 region, ahead of a key handle located at 0.4000. Such a move could allow a strong consolidation for the bulls and the sky could be the limit, at least in the first quarter of 2020.
New lows ahead?
On the flipside, however, XRP is looking to test the support zone of 0.2661. Due to an extreme level reached at 0.2913, hinting at the end of a cycle, according to Fibonacci projections.
If the spot manages a breakout below there and the 200 SMA, then a decline towards 0.2059 in a first degree is expected, followed by the 0.1882 level. That lower extension should produce additional selling pressure on the cryptocurrency and it could create a situation of the pair reaching the 0.1500 level.
Technical oscillators are showing mixed readings. The RSI is consolidating above the 50 level, while momentum stays below the equilibrium zone.
*OspreyFX would like to state that traders should research extensively before following any information given hereby. Please read our Risk Disclosure for more information.