XRP/USD has turned in an intriguing short term price range, and has demonstrated that support may exist within the digital asset that could attract speculators.
As of this writing XRP/USD is traversing below the 73 cents level. Ripple appears set to begin the month of March substantially above its starting point when February began. On the 1st of February XRP/USD was trading near a value of slightly below 63 cents. A high was made of nearly 92 cents in the second week of the month. Since then, XRP/USD has traded lower and did hit a depth of 62 cents on the 24th of February.
Intriguingly the lower water mark of 62 cents for Ripple which then reversed higher was seen only a handful of days before, and support levels of late January and early February which were challenged held. On the 22nd and 24th of January XRP/USD traded near lows of 55 cents. The fact that Ripple did not flirt with these lows during its recent downturn may prove to be attractive for technical traders, particularly if broad cryptocurrency market sentiment continues to consolidate near term.
The highs reached by XRP/USD did correlate with other major cryptocurrencies in the second week of February, but the lack of a low that didn’t challenge January depths stands out because many of the other major digital assets did struggle within these ‘darker’ values in the past week. XRP/USD has certainly struggled within a long bearish trend and its price remains well within the lower realms of its price range when a one year chart is used.
However, speculators may feel that Ripple has been oversold and that from a risk reward scenario it may produce more upside action than downside. A conservative amount of leverage must be used by XRP/USD traders and time parameters will prove very important for all wagers. However if support levels continue to prove durable near the 70 to 65 cents ratios, this isn’t a far cry away from current values being traversed. If these depths can hold back another wave of nervous selling if it erupts, traders cannot be blamed for believing the potential for a higher move may generate more power.
The ability of XRP/USD to hit a high of nearly 92 cents in early February can be interpreted as a positive sign considering this price challenged marks from late December. The technical perspective that XRP broke above January highs, and didn’t seriously challenge the lower depths seen during this same month may prove alluring. The broad cryptocurrency market certainly also needs to produce stability during March for XRP/USD to flourish, but if the right conditions are met Ripple may find that it is an enticing bullish wager.
Ripple Outlook for March:
Speculative price range for XRP/USD is 0.51000 to 1.05000.
Traders who are tempted to continue to short XRP/USD should keep their targets realistic while aiming for lower values. Current support near 70 cents should be monitored, and if the 69 to 68 cents levels prove vulnerable, speculators could certainly target the 67 to 66 ratios as a take profit opportunity. If support for XRP/USD breaks below the 64 cents mark this would be a bearish signal that additional lower values could be challenged quickly and a test of January lows could develop.
Speculators who believe XRP/USD has room to move higher should keep their sights on the 75 cents level. If a move above this juncture develops traders may believe the 80 cents target is legitimate. However for a real bullish trend to be affirmed trading of XRP/USD would have to break the 85 cents ratio and sustain these marks. If the early February values of 90 and 93 cents are flirted with and broad market cryptocurrency trading becomes vibrant, speculators may believe the 1.00000 juncture is a real goal. Traders are reminded to not be overly ambitious and use their risk management tactics wisely.
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