As a Sentiment Indicator Ripple Sounds a Loud Alarm

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XRP/USD is traversing important near term lows as this morning; this after the cryptocurrency has not been able to break through persistent resistance.

XRP/USD is trading near 34 and half cents as of this writing.  Highs achieved over the weekend may have had speculators dreaming about penetrating the 37 cents level, but resistance continued to be demonstrated and XRP/USD declined going into today’s trading. A high slightly above the 37 cents level was seen on Friday.

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Ripple is a Solid Behavioral Signal for things to come in Cryptocurrencies

XRP/USD did attain a high slightly above 38 cents on the 20th of July.  On the 24th of June XRP/USD was trading within sight of 39 cents. On the 30th of June XRP/USD was trading barely above 30 cents. And on the 13th of July, less than two weeks ago Ripple was also trading within sight of 30 cents again. For all of the movement created upwards from the lows of the 13th until the 20th of July when 38 cents was being challenged, things have not really changed for XRP/USD regarding sentiment.

The negative trend in the cryptocurrency market remains steadfast. The upwards trajectory among the major digital assets, including XRP/USD, the prior week were intriguing and perhaps some speculators who were buyers made profits. However, the past few days of trading have created another wave downwards and key support levels are again coming into sight.

If XRP/USD were to fall below the 34 cents level this could create a negative signal that an additional wave of selling may develop. Yes, XRP/USD was able to maintain some semblance of value and not falter below the 30 cents level the past five weeks. Yet Ripple did find itself trading around 28 cents on the 18th of June. How far are we away from the 28 cents mark today? Not far enough. That doesn’t mean XRP/USD will be trading near 28 cents soon, it just highlights Ripple is still in troubled waters.

  • XRP/USD remains in troubled waters even though it staged a week’s long rally. Support levels which are important remain in clear sight and could be vulnerable.
  • If the 34 cents level for XRP/USD fails to hold as support, the 33 and 32 cents ratios could be tested quickly.

Correlations of XRP/USD and broad Cryptocurrency Market remain Important

As a long time major digital asset XRP/USD is viewed as a strong indicator within the cryptocurrency world. Yes, Ripple certainly reacts to fluctuations of Bitcoin and Ethereum like all other cryptos, but it also stands alone as a sign of health – or ill health – for digital assets. If XRP/USD continues to falter in the near term it will not be a welcome sign by speculators who favor speculating on bullish upside price action.

Ripple Short-Term Outlook

Current Resistance: 0.35930

Current Support: 0.34090

High Target: 0.37140

Low Target: 0.31350

XRP/USD

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