The pullback in Ripple has been facing selling pressure close to the overhead resistance of $0.4 for the past two days. We have been expecting a minor correction or a consolidation at this level and that is what has happened.
If the price turns down from the current levels, it can find support at the 20-day EMA. Both moving averages have flattened out, which points to a probable consolidation in the short-term.
However, if the bulls break out of $0.4, the XRP/USD pair can reach the resistance line of the descending channel. Traders can book partial profits at this level because we anticipate a major hurdle in the $0.5–$0.62 zone.