Late Night Decline Puts Extreme Support into Focus

Hj Azhar RamliFebruary 1, 2022

0 19 2 minutes read

In late trading on Sunday XRP/USD slipped lower and fell through the 60 cents level, which brings important long-term support levels into view.

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As of this writing, XRP/USD is trading below the 59 cents level. The broad cryptocurrency market has correlated with Ripple and produced a decline last night. XPR/USD is now trading within the vicinity of long-term support levels and is within a price range which is still dangerously close to early last week’s volatile lows. On the 22^nd and 24^th of January XRP/USD traded below the 55 cents mark.

On the 26^th of January, XRP/USD did manage to trade above the 65 cents level, while exhibiting a solid reversal higher. However, Ripple soon ran out of momentum and has incrementally seen its support become vulnerable since reaching those short-term highs. As the last day of trading for the month gets underway, technically speaking Ripple remains within the grips of a solid bearish trend when a mid-term perspective is used.

The inability of XRP/USD to sustain prices above 60 cents is a troubling signal. The broad cryptocurrency market has also failed to break through important resistance to lessen the tension surrounding existing nervous sentiment. If XRP/USD falls through the 58 cents level, this could spark an additional round of selling by speculators who may start to believe that the digital asset is not going to escape its bearish trend too easily.

When XRP/USD was trading near 65 cents last week, the hope of a reversal may have spurred on some speculators to believe additional buying action was about to be ignited. However, until XRP/USD can sustain prices above this higher level for a couple of days of trading, proclaiming the end of even a short-term bearish move may be too ambitious. Yes, a trader could buy XRP/USD with a solid entry order and try to aim for short-term resistance as a quick hitting trade, but they should use stop losses wisely to protect against the potential of a stronger downturn.

Short-term traders may believe the 60 cents target above actually feels like a distant goal to achieve under the current trading conditions. XRP/USD remains too close to support seen in July of 2021, and trades who are considering additional selling positions while aiming for nearby lower depths cannot be blamed. If the 58 cents juncture fails to hold, targets such as 57 cents and below may prove worthwhile.