- XRP/USD has spent most of the last couple of weeks battling to shake off the bear pressure.
- There must be a catalyst to catapult XRP above the critical $0.34 supply area.
Ripple, the world’s third-largest cryptocurrency has continued to depreciate in value since the selloff in the last week of June. The support established in the first week of July between $0.3600 -$.3800 failed to hold during the selloff on July 10. XRP/USD has spent most of the last couple of weeks battling to shake off the bear pressure in a bid to escape the bear range between $0.28 (key support area) and $0.34 (critical supply area).
Meanwhile, the rejection from the supply area sent XRP towards the vital area at $0.30. Buyers understand that bears are likely to push hard if the price slides below this level. The possible support target is $0.28 (July lows), however, failure to find support at this level could result in more declines towards $0.25.
At press time, Ripple is exchanging hands at $0.3059 with the upside currently limited by the 50 Simple Moving Average (SMA) 4-h as well as the descending trendline resistance. A correction beyond $0.32 hurdle will allow the bulls to focus on attacking the critical supply area at $0.34.
XRP/USD 4-h chart
XRP Price Chart | Source: TradingviewTechnically, Ripple’s prevailing trend has a bearish tune to it with just enough buying power to defend the vital support areas. There must be a catalyst to catapult XRP above the critical $0.34 which will give crypto a boost towards $0.4 before end of July.
The Moving Average Convergence Divergence (MACD) had recovered above the mean line to levels around +0.0047 in the 4-h timeframe but has dived back into the negative. There is an increasing negative divergence at -0.0052 suggesting that the bears have the upper hand in the coming sessions.
Ripple Key Technical Levels
MACD 4-h chart: Increasing negative divergence points toward rising selling pressure.
Moving averages: 50 SMA under 100 SMA; sellers have more influence.
Key Support Areas: $0.30 and $0.28
Critical Hurdles: $0.32, $0.34 and $0.38.