XRP/USD has developed a sudden selloff early this morning and is traversing slightly above important psychological support levels.
XRP/USD has seen a sudden wave of selling develop early this morning, and the cryptocurrency is within sight of the 1 USD mark. After sustaining a rather solid bullish run higher since the 29th of September, the rather strong downturn which has been demonstrated the past couple of hours is a reminder that the use of the word ‘surprise’ when discussing digital assets should not be used when talking about trading. Traders need to anticipate volatility with cryptocurrencies at all times.
The move lower has not exactly been a spike, but the trajectory could sound alarm bells for speculators who were becoming accustomed to a relaxing trading environment. From the 20th to the 28th of September, Ripple was consistently testing support ratios near the 89 cents level, but a rather strong amount of buying began to develop the last couple of days in the month and, as of early this morning, XRP/USD was traversing near the 1.090000 juncture.
Volatility is a staple of cryptocurrency trading and fans of XRP/USD may be anticipating another upwards sweep to be exhibited in short order. However, if the 1 USD level is penetrated lower this could cause bearish speculators to target lower values based on the notion that only two weeks ago the 90 cents ratio was proving to be an important trading area. The recent bullish movement in XRP/USD has also been enjoyed by other major cryptocurrencies; the past few days have seen accelerated buying produced.
After suffering through an early morning selloff, traders will certainly have their perceptions tested short term. The broad cryptocurrency market did have negative sentiment hovering until quite recently and now speculators have to decide if the bearish sentiment is about to create another trajectory downwards. If current support levels near the 1.01000 to 0.98800 levels begin to look vulnerable, sellers could not be blamed for targeting 0.95000 as a wager.
Traders must be careful with their risk management and this morning’s early price action might indicate extreme volatile conditions will be demonstrated throughout the day. If current support levels do manage to prove adequate and are sustained for a good duration, short-term speculators may be tempted to be buyers around the current price levels and look for quick-hitting trades upward which target the 1.05000 to 1.08000 ratios.
Ripple Short-Term Outlook
Current Resistance: 1.06600
Current Support: 1.00700
High Target: 1.09700
Low Target: 0.92300