XRP/USD has correlated with its major cryptocurrency counterparts and experienced a sustained bearish trend, while hitting new mid-term lows yesterday.
A low of nearly 86 cents was touched by XRP/USD yesterday as the cryptocurrency sank to depths it has not traversed since the second week of August. Yes, a reversal higher was accomplished after the strong bearish action was demonstrated and XRP/USD did touch a high of approximately 96 cents. However, in early trading today, the low from Tuesday was retested and another slight reversal higher has been exhibited.
Ripple, like its major counterparts, has started to challenge support levels on a rather consistent basis since reaching mid-term highs on the 6th of September, which saw XRP/USD trading near the 1.41000 level. This early September high was a significant accomplishment, taking into consideration on the 20th of July that USD/XRP was trading slightly over 50 cents. The volatility within XRP/USD will continue to make it a favorite for speculators who choose to wager in cryptocurrencies.
As of this writing, XRP/USD is hovering slightly below the 94 cents juncture. Traders with a contrarian posture who remain optimistic that a sudden bullish trend is going to emerge may believe the 95 cents level is important, but more conservative traders may want to see a sustained price drive over 96 cents exhibited before they believe that now is the time to be a buyer with higher targets. In the meantime, more aggressive traders who believe the current price is slightly oversold may choose to be buyers on slight moves lower and simply target the 94-and-a-half cents, 95 cents and 96 cents prices as take profit goals.
However, if support fails to hold in the near term and overall cryptocurrency prices remain shaky with signs of nervousness, the 93 cents ratio should be watched. If XRP/USD begins to test the 0.93500 level and cannot sustain prices above, speculators may believe additional selling pressure could be ignited. The test of mid-term lows yesterday and early today are a signal that another test of lower depths could prove capable of puncturing support below and challenge values from 90 to 85 cents rather quickly.
From a risk reward viewpoint in the short term, there appears to be more likelihood that a more volatile move downwards is probable, compared to the potential of a move higher. Selling XRP/USD on slight moves higher and aiming for support below may be a worthwhile speculative position short term.
Ripple Short-Term Outlook
Current Resistance: 0.96700
Current Support: 0.89200
High Target: 1.02000
Low Target: 0.81300