In early trading today, XRP/USD has been able to sustain short-term highs and stay above resistance levels from late last week.
XRP/USD has been able to sustain its rather strong price range as it has brushed aside short-term resistance. As of this writing, XRP/USD is within sight of the 1.29000 level and the cryptocurrency did trade above the 1.30000 mark earlier in the day. Ripple has been able to surpass Friday’s highs and bounce nicely off reversals lower which were demonstrated yesterday and touched a low of nearly 1.17030.
In case you have not received the memo, trading in cryptocurrencies has grown volatile again as rather optimistic buying has infiltrated technical perspectives. On the 20th of July, XRP/USD was trading near the 50 cents ratio, and the ability of Ripple to create such a massive gain in what amounts to approximately one month needs to be acknowledged. Speculators who have been buyers are likely telling their associates, “I told you so”. Those who have not participated in the rather staggering rise in values are likely wondering if it is too late to join the speculative party.
Traders need to glance at six-month charts to gather some perspective on what capabilities XRP/USD has regarding upwards momentum. This does not guarantee that Ripple will only move higher. The prices XRP/USD attained from early April until the middle of May could prove enticing, but serve as a warning too that reversals lower are part of the game. XRP/USD, like all other cryptocurrencies, has the capability to move in a dynamic fashion and destroy perceived support and resistance levels with little trouble.
Price velocity within XRP/USD has grown fast and this opens the door to potentially being able to take advantage of a trend if you are lucky enough to ride its momentum. Current nearby resistance which is around the 1.30000 level should be monitored; if this mark is punctured higher and sustained and the 1.32500 juncture is proven vulnerable, traders may believe highs of 1.35000 to 1.40000 could be legitimate targets.
Traders are urged to not get overconfident. Cautious amounts of leverage should be used when trading XRP/USD and overly ambitious take profit goals should be reconsidered. While the momentum higher in Ripple certainly has the feel of a positive trend, reversals lower can happen and to protect against this a solid stop loss ratio should be used which can serve as protection against sudden shifts of sentiment.
Ripple Short-Term Outlook
Current Resistance: 1.32500
Current Support: 1.24000
High Target: 1.44500
Low Target: 1.20100