XRP/USD has begun trading today hovering within a storm value range. Ripple, likes its major counterparts, has been hit by a strong wave of selling which lasted into the weekend. XRP/USD actually traded near the 53 cents ratio briefly on the 22nd of January and then managed a reversal higher. However, the upwards trajectory, taking into account the results from the past handful of days, is not bullish parade.
Traders need to remain aware of the dominating trend within the broad cryptocurrency market which continues to signal danger and vulnerable support levels. While some traders may be tempted to believe Ripple has been vastly oversold, if their trading ability is not able to hold onto positions long term, it may be best to remain solidly focused on short-term results signaling the potential of further erosion in value.
As of this writing, XRP/USD is hovering near the 60 cents level and this weekend’s lower ratios are a combination of worrying signs. Suddenly, XRP/USD is trading near a range last contemplated in August of 2021. If the current support continues to falter and Ripple falls below the 59 and 58 cents levels, additional selling action could be fueled if values remain sustained beneath these depths.
On the 20th of January, XRP/USD was trading near the 75 cents level and the ensuing selloff has been wicked and fast. Volatility is a staple of cryptocurrency trading and risk management is essential. Speculators who want to bet against the tumbling values being displayed in XRP/USD should use stop losses and probably not try to be too ambitious when seeking upside momentum. Levels above of 64 and 65 cents feel like a distant climb in the current nervous market conditions for traders to attain.
Traders who want to continue to pursue the downside trajectory of XRP/USD should also be careful. Yes, the quick loss of value the past few days has been abundant, but speculators need to consider what type of firepower regarding selling remains to be seen in the short and near term for XRP/USD.
While the trend may continue to exhibit selling, fast results towards critical support may prove to be a hard-fought battle. Using take profit orders which are quick hitting and seek to cash in profits may prove to be a solid decision. Ripple continues to look rather weak, but traders need to prepare for reversals which could be sparked upwards without much notice.
Ripple Short-Term Outlook
Current Resistance: 0.64600
Current Support: 0.57320
High Target: 0.72200
Low Target: 0.50100
