XRP/USD lost value in a swift manner yesterday; in fact, its decline needs to be looked at carefully via technical charts as a warning sign.
XRP/USD has lost value the past two days of trading like many other cryptocurrencies, but its rather dynamic move lower yesterday should be looked at carefully and considered by technical speculators. On the 18th of May, XRP/USD was trading slightly above the 1.71000 level, which was within sight of highs achieved late in the first week of the month. However, XRP/USD certainly demonstrated yesterday that it is quite susceptible to the sentiment being generated in the broad cryptocurrency market, because it violently dropped below the 1.00000 late on Wednesday.
In early trading this morning, XRP/USD again touched low water marks slightly below 1.00000 but has experienced a reversal higher. As of this writing, XRP/USD is hovering near the 1.180000 juncture as fast conditions continue to be seen across the spectrum of cryptocurrencies. What makes yesterday’s plunge lower in Ripple intriguing is that the cryptocurrency had touched a low of around 1.21600 on the 12th of May, but was able to fight off of this mark and climb to the highs seen only two days ago.
Selling in XRP/USD was certainly strong yesterday, but what may spook speculators is that the dynamic move occurred slightly after a mid-term high was reached. In other words, XRP/USD was not trading in exact correlation with the broad cryptocurrency market until yesterday; before Wednesday’s trading, it can be said, depending on perspective, that Ripple was outperforming many other digital currencies.
Yesterday’s abrupt move lower and puncturing of the crucial 1.00000 may have set off alarm bells for XRP/USD as it joined ‘the party’ of bearish sentiment which has crept into the cryptocurrency market. This morning’s reversal higher should be watched carefully, because XRP/USD is now hovering slightly below important resistance levels. Since the 26th of April XRP/USD has spent a significant amount of its time trading between the 1.22000 and 1.69000 price ratios.
If XRP/USD is not able to propel itself above the 1.21000 to 1.23000 levels, this may be a signal that additional bearish momentum may develop in the short term. Speculators who have turned bearish may want to test XRP/USD within its current price vicinity and look for more downside action and a test of nearby support levels which look like an attractive wager.
Ripple Short-Term Outlook:
Current Resistance: 1.27600
Current Support: 1.14400
High Target: 1.36200
Low Target: 0.93300