XRP/USD is trading near the 39 cents level as May gets ready to head into the sunset. A low below 33 cents was seen in XRP/USD on the 9th of May. While Ripple may have been able to pick itself up from the lower depths of that value, XRP/USD remains fragile and its ‘high’ of nearly 46 and half cents which was seen on the 13th of May quickly disappeared. XRP/USD has incrementally sunk lower since this value was seen late in the second week of May.
As June prepares to launch, the broad cryptocurrency market remains in a fragile state. XRP/USD along with its major counterparts is struggling near important support levels. Very few bullish speculators seem to be prepared to step into the mix and become strong buyers at this time. XRP/USD is struggling near important support and has shown a real inability to create sustained reversals higher.
The 40 cents juncture may prove to be an interesting psychological juncture for XRP/USD. If Ripple continues to struggle beneath this value and is not able to climb above it and maintain a semblance of positive traction, the long term bearish trend which has been in effect since late March will likely remain difficult to stop. Yes, Ripple does serve as a utilitarian digital asset in the banking sphere, but a lot of its value is based on speculative confidence. If XRP/USD remains locked in its downward trajectory technical traders may have to consider a couple of rather negative signals.
While the results of trading in XRP/USD have certainly plummeted along with its major crypto counterparts, Ripple remains within a value range that is still within its early exuberant buying spree of February and early March of 2021. Technically it can be perceived that if bearish momentum continues and XRP/USD breaks through the 34 cents mark below, that things for Ripple could get worse before they get better.
Ripple Outlook for June
Speculative price range for XRP/USD is 0.23000 to 0.51000.
If downside momentum in XRP/USD remains steady and the 38 cents level falters and the 37 cents mark is proven to be vulnerable, bearish momentum could intensify. Yes, the broad crypto market remains extremely weak from a sentiment perspective and XRP/USD certainly feeds off of this nervous energy. A test in the second week of May saw Ripple fall below 34 cents and if this were to happen again, barriers below could quickly disappear.
If XRP/USD continues to consolidate below the 40 cents juncture and doesn’t jump above it this could be a poor indicator. If the 37 cents were to prove weak and trading suddenly could not penetrate 38 cents, traders may be inclined to continue pursuing downside momentum. Price velocity in XRP/USD is usually not as strong as its major counterparts, nevertheless traders need to use take profit and stop loss orders to engage properly. Leverage should be used conservatively.
For the few and brave among the cryptocurrency traders who decide to look for upside price action, XRP/USD has a target of 40 cents which stands right before them. If the 40 cents mark can be toppled and sustained, traders cannot be blamed for looking for 41 and 42 cents. However, before speculators become too optimistic they should note the 44 and 45 cents junctures do seem to be significant resistance levels. Certainly they could be punctured higher, but for the moment the nervous sentiment within the broad cryptocurrency market makes these higher values feel like they are miles away.
