XRP/USD continues to hover near important lows after reversing higher and eventually running into strong headwinds on the 14th and 15th of January.
On the 10th of January, XRP/USD was trading below the 70 cents juncture, and the price for Ripple is now below the 75 cents mark. Some traders may point to these ratios and say that the 5 cents gain in value is a good result over the past week-and-a-half. If, in fact, they were able to capture the movement and ‘bank’ its profits, then this argument has merit. However, XRP/USD continues to correlate to the broad cryptocurrency market and most short term traders are interested in technical perceptions which may develop today and tomorrow.
After hitting the stark lows on the 10th of January, XRP/USD did gain and reached a high on the 12th, but it ran into rather strong headwinds a handful of days later. On the 15th of January XRP/USD was trading slightly below the 79 cents mark, and the broad cryptocurrency market had exhibited a polite reversal higher too. But selling began to take place again within the speculative digital assets, and suddenly support levels began to falter. As of this writing, XRP/USD has demonstrated a tendency to tick slightly higher and then produce a stronger downturn the past few days.
The broad cryptocurrency market remains nervous as Ripple’s major counterparts also struggle near important support ratios. Worrying for XRP/USD is that the recent move downwards has taken place in a consolidated mode. Some technical traders may point to the current price conditions and short term charts, and proclaim buyers are stepping into long positions and accumulating XRP/USD near perceived lows. However, the inability to produce a strong upwards trend may be proof that this optimistic bullish hope is only wishful thinking.
The inability of XRP/USD to crash through the 79 cents level and challenge 80 cents a handful of days ago might have been the ‘best’ attempted bullish run higher. The selloff produced after the highs on the 15th failed to challenge the highs of the 12th and 13th and kept the bearish selloff still safely on display, and actual buyers may have become spooked and given up on short term long positions.
XRP/USD is challenging important support levels and if the 74 to 73 cents marks are flirted with and broken lower, speculative bearish traders may believe further nervous selling may prove strong. Wagers on the downside should remain realistic and price targets should be dealt with by having a solid take profit position working to capture gains when they are generated. Traders should be ready for the potential of volatility, but looking for downside price action near term from XRP/USD may prove to be a worthwhile bet.
Ripple Short-Term Outlook
Current Resistance: 0.75200
Current Support: 0.73850
High Target: 0.76400
Low Target: 0.70800