XRP/USD remains within its lower range as the downtrend continues to create a difficult trading scene for speculators looking for significant reversals to the upside.
The XRP/USD pair remains within a difficult downtrend that has shown few signs of pulling back. While the XPR/USD pair managed to rally higher yesterday, this morning’s early headwinds have led to Ripple trading once again under 76 cents. The prevailing sentiment remains tense as sellers continue to insist and support levels are challenged. On January 10, XRP/USD broke below 70 cents, but bounced back higher.
Optimistic traders who believe that XRP/USD is oversold may continue to test the market with long positions, but it is likely that they will not pick up as much of an upside. Bullish traders who head against the trend and bet on higher reversals cannot be blamed, but they must ensure that they are not overly ambitious when targeting targets.
The 78-cent barrier has proven very difficult and the 79-cent target may be difficult to achieve in the short term. Certainly some reversals will continue to appear in XRP/USD, but until Ripple drops the 80-cent crossover and proves that it can sustain itself above, the technical charts can be said to be in a bearish mode.
Quick hit trades may be best and stop loss and take profit orders should be practiced. If the current support falters near the 0.075500 level and another dose of strong momentum to the downside is generated, traders cannot be mistaken in believing that XRP/USD can retest 74 cents to 73 cents and drop easily. The broad cryptocurrency market was able to post gains yesterday, but at the start of trading today, headwinds emerged.
Ripple’s highest level last month was around 1.01000 on Dec 23, since then XRP/USD has resumed its downtrend. The question that speculators might consider is how far down the value of XRP/USD can go. If the 70-cent ratio is seriously challenged and Ripple maintains a price below this mark for an extended period of time, this could be another weak signal. Until then, traders should be satisfied with targeting support levels on hand. Selling XRP/USD with slight moves up to follow the downtrend might be beneficial in the near term as a speculative bet.
Short term prospects:
Current resistance: 0.77020
Current support: 0.75500
High target: 0.79040
Low target: 0.67800