- XRP/USD has embarked a strong recovery from multi-week lows.
- The further upside may be limited by congestion zone $0.4400-$0.4430.
XRP/USD made its way to a critical $0.4400 handle after sliding to as low as $0.3760 during late Asian hours. XRP/USD gained over 10% since the beginning of Friday and moved in the green zone on a day-on-day basis. While all major coins are recovering from yesterday’s lows during early Asian hours, XRP is the growth leader so far. The third largest coin has the market capitalization of $16.7B, while an average daily trading volume is registered at $741B, against $660 on Thursday.
XRP/USD, the technical picture
From the technical point of view, a sustainable movement above $0.4000 handle improved the short-term picture and attracted new speculative interest. XRP/USD is changing hands at $0.4370 with the upside momentum gaining traction. The short-term RSI is close to overbought levels, however, there are no clear signs of upcoming correction. A strong local resistance is noted at the congestion zone $0.4400-$0.4430. Once itis cleared, the recovery will continue towards Pivot Point weekly, Support 2 on approach to $0.4350 followed by 61.8% Fibo retracement under $0.4500.
On the downside, the local support is produced by the psychological $0.4300. Once this hurdle is out of the way, the sell-off may be extended towards $0.4100 congestion zone.