XRP/USD is traversing lower price values, after suffering a rather strong selling wave yesterday as speculative nervousness in the cryptocurrency markets heightens.
XRP/USD is trading around 75-and-a-half cents as of this writing. Ripple has been hit like its major counterparts with a strong selling wave the past day as nervousness grows within the cryptocurrency market. XRP/USD did hit a low of approximately 0.71750 briefly yesterday. While some optimistic Ripple fans may say this happened only momentarily, in a troubling technical development the low reminded traders of another flash crash seen in early December when XRP/USD came within sight of 65 cents.
Nervous conditions in cryptocurrencies have been growing the past couple of weeks as sentiment within the asset space has watched important support tested rather consistently. Selling in XRP/USD yesterday and other major digital assets definitely witnessed bearish price action growing. The question is what happens next. Bullish XRP/USD traders may look at the current value of Ripple and decide this is a good opportunity to pursue worthwhile values. However, there is a difference between buying XRP/USD for the long term compared to day trading endeavors.
If XRP/USD remains near its current support levels it will be confronting ratios not tested since the first week of December. Yes, XRP/USD was able to stage a move upwards after testing lower values in early December, but will the same scenario occur once again? Essentially XRP/USD is testing ground that has not seen a sustained amount of trading since early August of 2021.
Traders who are selling XRP/USD and looking for quick hitting results may be overly ambitious to look for the 70 cents level. However, if XRP/USD remains volatile and this lower value somehow comes into the picture near term, this would be a strong indication further downside price action could ensue. The trend of XRP/USD has been negative since the second week of November when a value of nearly 1.3550 was attained. Since then XRP/USD has lost nearly double its value.
Traders who are keen on Ripple and believe the cryptocurrency is near important long term support levels which can spur on sudden buying may be tempted into wagering. However, if they do pursue long positions they should certainly use stop loss orders to protect against the potential of more downward movement.
Speculators looking for downside prices to continue cannot be blamed and this may be the logical choice for trading XRP/USD. Traders should use take profit orders and not be overly ambitious regarding the downward slope they seek regarding price targets. The trend has been negative in XRP/USD and it may continue to be demonstrated near term, but as always Ripple and other cryptocurrencies can produce volatility that is not expected.
Ripple Short-Term Outlook
Current Resistance: 0.77600
Current Support: 0.74660
High Target: 0.86900
Low Target: 0.71400
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