- XRP/USD lost its traction after posting gains for two straight days.
- Above $0.3250, Ripple could target 2020 highs near $0.3460.
- XRP/USD could stage a technical correction before the next leg up.
Following the impressive rally witnessed in the last week of July, Ripple (XRP/USD) staged a deep correction to the Fibonacci 38.2% retracement level and found support there. After posting strong gains and rising nearly 6% in the last two days, however, XRP/USD struggled to preserve its bullish momentum in choppy weekend trading and was last seen flat on the day near $0.30.
XRP/USD technical outlook
With a weekly close above $0.2940 (Fibonacci 23.6% retracement of the latest rally), the pair could target $0.3250 and $0.3460 (2020 high). However, the daily RSI indicator is already showing overbought conditions, suggesting there could be a pullback before the pair turns north.
On the downside, $0.2940 (Fibonacci 23.6% retracement) could be seen as the initial support ahead of $0.2820 (20-day SMA) and $0.2745 (Fibonacci 38.2% retracement.)