XRP/USD has slumped the past few weeks after hitting a mid-term high on the 11th of November, and important support is now within sight.
The price of XRP/USD as of this writing is near the 1.00000 juncture, and while that may prove to be an important inflection point for some, in fact Ripple touched the 90 cents mark only yesterday. As the month of December gets set to begin traders of XRP/USD may prove to be a nervous bunch depending on their perceptions. While XRP/USD was able to make a solid mid-term high on the 11th of November near the 1.35000 ratio, it has slumped since this accomplishment.
XRP/USD has mirrored the results of its major counterparts the past month of trading. However, the highs made in November only came within shouting distance of values seen in September near the 1.41000 level. And when a long-term, one-year chart is looked at, Ripple has not been able to catch the same amount of speculative fever like its other major counterparts. The high for 2021 was put in during the second week of April when XRP/USD flirted with the 2.00000 mark.
Speculators of XRP/USD should certainly be ready for the always possible strong amount of volatility which can happen within all cryptocurrencies. Yet, the volatility factor within Ripple has actually remained understated compared to other cryptos. Yes, XRP/USD can produce a solid percentage change and the fact that it trades in incremental pips can cause widespread speculative profits and losses when a large amount of leverage is used.
The acknowledgement that XRP/USD is trading near 1.00000 may prove to be important in the coming days and weeks. If Ripple is able to climb higher and sustain a solid amount of gains near the 1.10000 ratio, it could signal that another move may develop higher. However, traders should not be overly ambitious with Ripple if they are short-term traders. Speculators who are day trading should look for small moves and use their risk taking tactics, like take profit orders, to catch what may prove to be rather limited changes in value over the next few weeks.
XRP/USD is the seventh ranked cryptocurrency in terms of market capitalization. Ripple certainly continues to have a place in the speculative sun, but its price action clearly has shown signs of a more stable trading environment compared to other cryptos in many regards. Now while that would likely prove to be a good thing for most investors, speculators who are day trading may want to accept the notion that in order to capture a significant move in XRP/USD they may need to use longer term trades or a greater amount of leverage. These two things could lead to greater profits, but also worse losses.
Ripple Outlook for December
Speculative price range for XRP/USD is 0.69000 to 1.31000.
If XRP/USD falls below the 1.00000 mark and sustains value below this juncture and the 90 cents mark is challenged again, it could set off some alarm bells among bearish speculators. XRP/USD seemingly has not been able to garner the same amount of speculative flavor as its major counterparts the past few months of trading. While its results have mirrored other major cryptos the past month, there seems to be a technically bearish tone to XRP/USD. If the 90 cents ratio were to falter it is conceivable that Ripple could then flirt with the 85 and 80 cents levels relatively easily.
Speculative bullish traders who believe XRP/USD will again capture upside momentum, should monitor the 1.10000 mark. While in the short term the 1.05000 level is important, only if the 1.10000 ratio is penetrated higher can a bullish mode be considered legitimate. If XRP/USD is able to break above this level and sustain price action traders could not be blamed for thinking the 1.20000 and 1.25000 price realms are sincere targets.