- XRP/USD has been recovering since the start of the European hours.
- The lack of follow-through may put the recovery in jeopardize.
XRP/USD jumped above $0.2000 and tested the intraday high at $0.2017. At the time of writing, XRP/USD is changing hands at $0.2000; however, the short-term bias remains bearish. The price of the third-largest digital asset gained over 3% since the start of the day and stayed unchanged in the recent 24 hours.
XRP/USD: Technical picture
A sustainable move above $0.2000 might improve the technical picture provided that we see a follow through and a recovery towards $0.2030. This resistance limited the recovery since the beginning of May, moreover, it is reinforced by 38.2% Fibo retracement for the downside move from February 2020 high. A recovery above this area will improve the short-term technical picture and allow for an extended upside towards $0.2060 that served as an upper line of the recent consolidation channel.
On the downside, the initial support is created by daily SMA50 at $0.1990. Once it is broken, the sell-off may be extended towards $0.1920. This barrier is created by the lower line of the 4-hour Bollinger Band and the lowest level of the previous four hours. The next strong support comes at $0.1900-$0.1890 (psychological level and Thursday’s low).