(MENAFN- Daily Forex) Advertisement Looking for a top-rated broker that offers both crypto and Forex trading? GET STARTED
As of this morning, Ripple is trading below the 41 cents level. A high with of nearly 0.42750 was seen yesterday, but a wave of strong selling in the broad crypto markets ignited downward movement in Ripple. A low of nearly 40 cents was challenged as XRP/USD slid quickly; the price velocity of the move is troublesome from a technical perspective.
While XRP/USD was able to hold back the selling and did demonstrate a slight reversal higher, this move has not caused a strong parade upwards. Ripple remains within a price ratio of long term lows and speculators who are glancing at charts need to pull out five year charts to gather a perspective. On the 12th of May XRP/USD did hit 35 cents and briefly flirted with the 33 cents juncture. On the 13th of May a strong reversal higher was sparked to around 46 cents. Prices from February and March of 2021 are being tested as support levels now.
However since hitting this mid-May high XRP/USD has been choppy and incrementally traded lower again. Yesterday's low challenged prices last seen on the 20th of May. Nervous conditions remain evident and if another flourish of strong selling hits the broad cryptocurrency market there is reason to suspect current support levels will falter in XRP/USD. If Ripple falls through the 40 and half cents ratio, speculators will have their eyes on the 40 cents mark again.
Behavioral sentiment suggests that the 40 cents mark is important. Yesterday's climb from this lower depth was significant, but if the value is touched again there is a likelihood that 40 cents could crumble, and the 39 and 38 cents realms will become a focus. Price velocity was apparent in the broad cryptocurrency market yesterday. After being able to establish short term highs over the weekend, the major digital assets witnessed a strong and sudden selloff and XRP/USD could not escape this fast decline.
Some speculators may believe Ripple has been oversold, and they may be proven correct in the long term. However, day traders may want to continue to look at the current bearish trend and remain speculative sellers. The notion that XRP/USD is going to produce an outlandish climb higher and not retest current lows is not probable in the near term. Current support levels do look vulnerable, and speculators who want to wager on further downside action with selling positions cannot be blamed. Shorting XRP/USD when it comes close to existing resistance may be a solid tactic short term.Ripple Short-Term Outlook
Current Resistance: 0.41190
Current Support: 0.40127
High Target: 0.42360
Low Target: 0.38190
Legal Disclaimer: MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.