XRP/USD is surpassing lower price values, after suffering a strong sell-off yesterday as speculative tension escalated in the cryptocurrency markets.
XRP/USD is trading at about 75 and a half cents as of this writing. Ripple, like its major peers, was hit with a strong sell-off in the past day as the tension in the cryptocurrency market increased. The XRP/USD pair briefly bottomed at 0.71750 yesterday. While some bullish Ripple fans might say this only happened for a moment, in a worrying technical development, low traders mentioned another sudden crash seen in early December when XRP/USD approached 65 cents.
Nervous conditions in the cryptocurrency have grown over the past two weeks as sentiment within the asset space has seen significant and consistently tested support. The sell-off in XRP/USD yesterday and other major digital assets certainly saw bearish price action growing. The question is what will happen next. Bullish XRP/USD traders may look at the current value of Ripple and decide that this is a good opportunity to pursue a worthwhile value. However, there is a difference between long-term XRP/USD buying compared to day trading endeavors.
If XRP/USD stays near the current support levels, it will face rates that have not been tested since the first week of December. Yes, XRP/USD managed to move higher after testing lower values in early December, but will the same scenario happen again? Basically, XRP/USD is testing the floor that hasn’t seen a steady amount of trading since early August of 2021.
Traders short of XRP/USD and looking for quick results might be too ambitious to look for the 70 cents level. However, if XRP/USD remains volatile and this lower value somehow comes into the picture in the near term, this will be a strong indicator that could entail further downward movement in the price. The trend of XRP/USD has been negative since the second week of November when the value of around 1.3550 was reached. Since then, XRP/USD has lost nearly double its value.
Traders who are keen on Ripple and believe that the cryptocurrency is close to important long-term support levels that could trigger sudden buying may be tempted to bet. However, if they are following long positions, they should definitely use stop-loss orders to protect against the possibility of further downward movement.
The speculators who are looking to continue lowering prices cannot be blamed and this might be the logical choice for XRP/USD trading. Traders should use take profit orders and not be overly ambitious in terms of the downward slope they seek in relation to price targets. The trend has been negative in XRP/USD and may continue to emerge in the near term, but as always, Ripple and other cryptocurrencies can produce unexpected volatility.
short-term expectations ripple
Current resistance: 0.77600
Current support: 0.74660
High target: 0.86900
Low target: 0.71400