XRP dives into oversold territory while technicals turn bullish

• XRP price lost ground as traders sold off the coin after Spark airdrop.
• The technical picture implies that the token is poised for a recovery.

XRP is hovering below $0.5 after a significant sell-off during the weekend. The third-largest digital asset with the current market capitalization of $22 billion has lost over 4% in the past 24 hours and over 18% on a week-to-week basis. 

The coin hit the recent high of $0.92 amid Spark airdrop expectations. Users moved over 1.2 billion tokens to the cryptocurrency exchange accounts within a couple of days ahead of the airdrop. However, the pump was short-lived as traders dumped their tokens once the snapshot of account balances was taken. XRP fell below psychological $0.5 in a matter of hours on Saturday, December 12, and entered the consolidation phase.

XRP price recovery is underway

As technical indicators show, XRP may be ready for a rebound. The TD Sequential indicator has presented buy signals – in the form of a red nine candlestick – on multiple intraday charts, including 2-hour, 1-hour and 3-min. If the bullish pattern is confirmed, the price may create from one to four green candlesticks, with the first recovery target at $0.52. 

XRP/USD, multiple charts

A sustainable move above this area will open up the way to $0.56. This resistance is created by the downside trendline and the 1-hour SMA200 and the 4-hour SMA200.

XRP/USD, 4-hour chart

On the other hand, critical support comes at $0.48 whether the 200SMA is hovering at on the 4-hour chart. If it fails to hold, the downside momentum will gain traction and push the price to the psychological $0.40 or even to $0.33.