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- XRP / USD settles above $ 0.34.
- Momentum indicators imply a correction from the overbought territory.
The XRP / USD is changing hands at $ 0.3424 after a short-term peak at $ 0.3580 during the early Asian hours. Ripple's currency has gained almost 16% in the last 24 hours and more than 3% since Tuesday's trading began. The second largest currency with a market value of $ 13.6 billion posted strong growth in average daily trading volumes from $ 313 billion on Sunday to $ 720 billion on Tuesday morning.
The technical framework of Ripple
On the 4-hour chart, XRP / USD surpassed both the SMA50 and the SMA100, creating a short-term uptrend setup. Technically looking,
there is very little in terms of resistance levels above the current price up to $ 0.3800. This strong obstacle, reinforced by Fibo's 23.6% (monthly) retracement level, is followed by $ 0.3900 (SMA200, 4 hours) and last $ 0.40 (DMA50).
However, it is worth noting that the Relative Strength Index is taking off from overbought territory, which implies a downward correction after strong growth.
On the downside, the price must remain above $ 0.3320 (SMA100, 4 hours) to keep the short-term upside down. Once eliminated, the sell-off can be extended to $ 0.3200 and a critical $ 0.30 boosted by the SMA50 (4 hours).
XRP / USD, 4-hour chart
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