XRP/USD is trading within sight of important July 2021 values as Ripple has continues to traverse lower and test important support levels.
Ripple is trading slightly above 60 cents as of this writing. XRP/USD’s highs for the month of January were as the New Year got underway and the token traded near the 85 cents level. Like the broad cryptocurrency market, XRP/USD has suffered a serious amount of nervous selling and last week saw a low of nearly 54 cents flirted with briefly. XRP/USD is close to a price range which was experienced in July 2021 when Ripple traded below the 52 cents level momentarily.
Looking at XRP/USD with a downward perspective, the current price levels are important, particularly if Ripple were to begin trading below the 60 cents juncture in a sustained manner. The next important pressure point for XRP/USD would appear to be the 56 and 55 cents marks, if these were to be challenged and proven vulnerable for a strong duration, nervous traders may begin to believe the 52 to 51 cents marks could be targeted.
While Ripple certainly trades in correlation to the broad cryptocurrency market, its stature as a digital asset which has utilitarian purpose in the banking community allows it to stand out. This makes XRP/USD not only a speculative asset for traders, but also gives the cryptocurrency an identifying characteristic as a true barometer of sentiment within the cryptocurrency sphere. On the 10th of November 2021, XRP/USD was trading near a high of around 1.34000, in less than three months of time, Ripple has lost more than half of its value.
The bearish trend in XRP/USD is approaching important support levels and if the July lows from 2021 suddenly look vulnerable and the June values are challenged to the downside, this would be an indicator the broad cryptocurrency market is suffering. Nervous sentiment certainly is strong at the moment and while XRP/USD trades near the 60 cents juncture there may be a crowd of traders who believe Ripple has been oversold. The price of XRP/USD remains a relatively cheap cryptocurrency to speculate on, but traders are urged to remain cautious and practice risk management with care.
After the fast downward slope of XRP/USD last week, Ripple was able to jump higher and touch the 65 cents mark. However, this upwards momentum could not be sustained and as February approaches XRP/USD is near important psychological marks, and technical traders should monitor its position. At 60 cents of value, a mere 6 cents move represents a 10% value change. The use of leverage is necessary when trading Ripple. The use of entry, stop loss and take profit orders is highly encouraged. While XRP/USD looks like it is valued cheaply per its long term technical charts, the coming weeks could prove dangerous for speculators based on moves of only 6 cents.
Ripple Outlook for February
Speculative price range for XRP/USD is 0.45000 to 0.83000.
If XRP/USD remains near the 60 cents juncture and actually begins to trade below this level with a sustained move, this could be perceived as a negative bearish signal. While some traders may immediately believe anything below 60 cents is too cheap for Ripple and be tempted to be buyers, they are cautioned that XRP/USD is near dangerous support. If the 58 to 57 cents marks are challenged and broad market sentiment remains skittish, Ripple could certainly test lower levels. Any trading below the 55 cents level for a couple of days would be more evidence that lower values could develop. A break below 50 cents may be interpreted as a buy signal by some, but it could also point to even lower volatile prices.
XRP/USD could see bullish wagers grow if it is able to sustain its price over 60 cents as February gets underway. The mid-term has certainly produced a bearish trend and important support is being tested, but speculative buyers who believe they can get in and out of XRP/USD quickly could be tempted to aim for nearby resistance levels. At its current low values, any moves in Ripple will have an immediate effect on trading accounts, and speculators are urged to cash in profits and remain realistic. If the 65 cents level is tested and penetrated, traders should watch out for the potential of additional upwards volatility. However, until Ripple is able to break through the 76 cents level, it may still only be part of a false rally narrative, so traders should remain cautious about proclaiming a bullish technical pattern.
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