The recent crypto crash means Bitcoin (BTC) has lost support at $8,000 and Ethereum (ETH) has dipped below $250 in one of the worst corrections of this year so far. Ripple (XRP), however, refuses to give up the significant psychological $0.40 support level that easily.
Despite a minor dip below $0.40 earlier today, XRP quickly climbed back above the level where it is now trading at around $0.404. XRP tends to show a trend of trading tightly above significant support levels with the asset holding the $0.30 level for the majority of this year before climbing to $0.40 with the May bull run.
XRP vital amongst top crypto assets
The European Central Bank (ECB) recently released a report citing several cryptocurrencies as being vital to financial stability, market structures, and monetary policy. While it noted that Bitcoin (BTC) remains the pack leader in the crypto world, Ethereum (ETH), Bitcoin Cash (BCH) and Ripple (XRP) were all “important in terms of usage, market capitalization or business model diversity.”
The report went on to confirm that while the industry should remain strictly monitored, the cryptocurrency market doesn’t yet pose any serious risks to the wider global economy.
A bull and bear tug of war
The recent dips mean XRP’s 50-day simple moving average (SMA50) has now crossed back over its 20-day simple moving average (SMA20). The SMA20 moving above the SMA50 in late May was seen as a bullish event and precipitated a price rise that saw XRP touch $0.48. The reversal of this pattern could be the precursor for a decline in the Ripple price but some indicators say otherwise.
Earlier today on the hourly chart, FXStreet analyst Rajarshi Mitra foresaw XRP as being undervalued and rightly predicted XRP to trade in an upward channel towards resistance at $0.405. This has now occurred and confirmed a short-term bullish pattern that could drive further upward momentum.