Volatile Spike Lower Good Speculative Reminder

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XRP/USD has demonstrated a sharp move lower in early trading as a nervous weekend of trading has continued into Monday morning.

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As of this writing, Ripple is trading within sight of the 68 cents level, but only a few hours ago XRP/USD was trading near the 70 cents mark.  On the 21st of April XRP/USD was trading near the 76 cents juncture, and the trend downward which has been in effect since the 28th of March in Ripple has not shown much ability to reverse higher. On the 28th of March it should be noted that XRP/USD was trading above the 90 cents ratio.

This morning’s spike lower touched the 67 cents mark and this value had not been traded seen since the last week of February.  XRP/USD was able to display an upwards trend for a few weeks in March, but sentiment has clearly shifted once again and nervous selling has taken control. The question for speculators in the short term is whether the rather exuberant amount of selling is about to end or if additional depths will be seen.

Technical traders will need to look at mid-term charts to gather a proper perspective regarding potential support levels. Certainly day traders who want to pursue reversals higher can wager on this type of momentum developing, but the trend for nearly four weeks has shown that bearish momentum is still in control of the cryptocurrency market. If XRP/USD begins to test depths below 67 cents, and the 66 and 65 cents marks are approached, trading could become more volatile near term.  

The fact that Ripple is now within plain sight of values not tested since February is a poor signal. XRP/USD may be acting as an early indicator within the cryptocurrency market, Ripple is a utilitarian digital asset used in the banking payments sector. The notion that XRP/USD started rising in price slightly before many of its major crypto counterparts in early March, and has now stumbled to problematic lows not seen since February may be a negative sign for things to come.

Sellers of XRP/USD cannot be faulted for believing a speculative wager on more downside may prove to be worthwhile. Cautious traders may want to wait for slight moves higher to initiate their selling positions,while betting on a downturn to develop and continue what has proven to be a rather solid bearish trend. If XRP/USD cannot sustain the 0.67650 level today and shows more vulnerability, it is not unreasonable to suspect Ripple could fall below 67 cents again sooner rather than later.

Ripple Short-Term Outlook

Current Resistance: 0.68150

Current Support: 0.67210

High Target: 0.70100

Low Target: 0.64950

XRP/USD

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