XRP bulls need to crack 200-DMA to extend the recovery

  • XRP/USD looks to extend recovery from two-week lows.
  • 200-DMA is the level to beat for the XRP bulls.
  • Daily RSI edges higher but holds below the midline.

Ripple (XRP/USD) is attempting to build on Friday’s impressive bounce from two-week lows of $0.2400 amid the upbeat sentiment witnessed across the crypto board so far this Saturday.

The no. 3 coin currently trades near $0.2800, adding over 2% on a daily basis. However, it remains on the track to end the week almost unchanged.

The altcoin rose as high as $0.3295 earlier this week following the news of the nomination of Michael Barr, a former US Treasury official and a former key member of Ripple’s advisory board, as head of the Office of the Comptroller of the Currency (OCC). 

XRP/USD: Battling 21-DMA on the road to recovery

XRP/USD: Daily chart

Ripple’s daily chart shows that the bulls are trying hard to recapture the 21-daily moving average (DMA) at $0.2826, in order to revive the recovery momentum.

However, with the 14-day Relative Strength Index (RSI) still trading within the bearish territory, the XRP bulls lack the conviction for the upside extension.

Acceptance above the 21-DMA could open doors for a test of the critical horizontal 200-DMA at $0.3066, Note that the coin has failed to sustain above the latter since January 10.

A daily close above the 200-DMA barrier is needed to negate the bearish bias.

Alternatively, a rejection at the abovementioned 21-DMA hurdle could expose the three-week-long falling trendline support at $0.2465, below which the two-week troughs will be put to test.

The next best support awaits around $0.2150 while the December 29 low of $0.1719 would be the last line of defense for the bulls.

XRP/USD: Additional levels to consider