XRP/USD has created a slight reversal after falling to important lows yesterday, but the 50 cents juncture still may prove to be a bearish target.
XRP/USD traded near the 0.51500 mark yesterday and then managed to produce a slight reversal higher. As of this writing, Ripple is trading near the 0.54600 mark and traders who have been pursuing negative bearish action may have reasons to stick to their positions and pursue further downside traction.
Traders are certainly urged not to become overly ambitious, and cash in winning positions so they do not vanish into thin air. At a minimum, if a speculator is lucky enough to have a selling position within XRP/USD, and has achieved significant profits in their accounts and does not want to cash out the wager yet, they should at least be lowering their stop loss ratios to make sure sudden reversals higher do not eat a large proportion of their unrealized profits.
XRP/USD has been trading with a rather solid price range, but it has incrementally demonstrated more bearish behavior in July. On the 19th of July, XRP/USD was trading near the 0.56500 ratio before stumbling lower. Yesterday’s fall to within sight of the 0.51000 level was important and it did manage a rather polite reversal higher. However, XRP/USD is definitely under the resistance levels which are now comprised largely of Monday’s trading value. Until XRP/USD shows an ability to challenge these heights and sustain a higher value, bearish technical sentiment continues to look like the correct trading posture.
Traders may want to sell XRP/USD on slight reversals higher based on the notion that downside traction will once again prevail. The moves within Ripple may feel like they are insignificant when viewed with a simple glance of a trading platform, but traders are reminded that moves of 10% and more are possible, so a cautious amount of leverage should be practiced when speculating on XRP/USD.
The broad cryptocurrency market continues to exude nervous sentiment and XRP/USD feels this effect. After falling to fresh mid-term lows yesterday and creating a slight reversal higher, Ripple continues to remain near dangerous support levels. If traders believe the 50 cents level is a legitimate target for XRP/USD in the coming days, they may continue to sell the digital currency based on the notions that downside momentum will be demonstrated sooner rather than later. Short-term traders need to use risk management, but selling XRP/USD on slight moves higher and seeking quick-hitting take-profit goals could prove to be a worthwhile endeavor.
Ripple Short-Term Outlook:
Current Resistance: 0.55300
Current Support: 0.53200
High Target: 0.57400
Low Target: 0.50800