XRP/USD has traded lowerthis past week, and yesterday’s low water marks were demonstrated in a hurry as Ripple touched nearly 1.21000. Just one month ago, on the 14th of April, XRP/USD came within sight of the 2.00000 mark. However, since this high has been achieved, XRP/USD has often struggled. In late April on the 23rd and 25th, XRP/USD actually traded below the 1.00000 level. This highlights that Ripple can produce fast speculative results like every other digital currency.
Only one week ago, on the 7th of May, XRP/USD did manage to display a high of approximately 1.75000. Since this date, Ripple has seen resistance levels incrementally lower as profit-taking has seemingly taken hold within the cryptocurrency. The current price of Ripple is hovering within important vicinities as mid-term support levels can be interpreted via technical charts. If the junctures of 1.31000 to 1.30000 can withstand the bearish momentum which has been displayed the past week, this may prove to be a positive signal for XRP/USD.
However, if support is proven to be vulnerable and a test of lower values are displayed, the 1.25000 ratio could become a factor for XRP/USD. Sentiment in the broad cryptocurrency market has proven to be nervous for many of the major digital currencies early this week and XRP/USD has certainly suffered from a lack of confidence too. Speculators may brush this nervousness off, however, and believe a reversal higher will develop again.
Speculative traders may want to wait for additional declines to engage bullish positions if they believe reversals will develop. Traders who believe that bearish sentiment will remain in the cryptocurrency marketplace short term may actually want to be aggressive under present conditions and consider selling XRP/USD if current price levels fail to produce significant moves higher.
Momentum trading within XRP/USD should be considered by all traders as a way to capture market flow. The use of limit orders can be used as a solid tactical decision to pursue technical sentiment. Short-term traders who are cautious and believe that more downside price action will ensue near term should not be overly greedy and use take-profit orders to capture speculative wagers if winnings are accomplished. XRP/USD has the ability to move swiftly and traders need to make sure their risk management tools are working properly to guard against sudden reversals.
Ripple Short-Term Outlook:
Current Resistance: 1.40000
Current Support: 1.31000
High Target: 1.62000
Low Target: 1.17000
