Important Mid-Term Support Facing Bearish Pressure

22 June 2021

in XRP

Reading Time: 2 mins read

XRP/USD has seen a swift selloff in the past couple of days and important mid-term support junctures have proven vulnerable.

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XRP/USD fell through the 60 cents price level late yesterday. A slight reversal higher has taken place and the current price of XRP/USD is above the 61 cents ratio now, but after trading at a high of about 77 cents over the weekend, this will not make speculative buyers feel any better. The broad cryptocurrency market remains in a nervous state and Ripple has not been able to hide from the onslaught of selling momentum.

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Important mid-term support levels are now within view for technical traders who may be considering additional moves downward. XRP/USD is trading within a value range it last touched in the first week of April. Significantly, XRP/USD is trading under the depths it saw on the 23^rd of May when the broad cryptocurrency was shaken by a massive amount of selling. Resistance junctures near the 64 and 66 cents marks should be watched closely; if they are not able to be punctured higher, this may create another dose of sour notes and may indicate further price erosion.

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Support near the 60 cents level needs to be watched. XRP/USD did trade near a low of 57 cents yesterday and if current price action continues to see increased bearish activity, speculators could not be blamed for believing this lower value could be tested again near term. XRP/USD is a volatile speculative endeavor at all times and because of the nervous sentiment being generated within the broad cryptocurrency market, traders will need to be ready for additional fast conditions.

XRP/USD may appear cheap to speculative bullish traders who believe the digital currency will gain. However, the trend in XRP/USD has been extremely bearish and, until there is a shift in sentiment and resistance levels are actually punctured, remaining a seller appears to be the logical decision.

If the current price range of XRP/USD is not able to hold back the downward momentum, traders will need to consider 6-month charts to gain a perspective regarding the potential price destinations for Ripple. The 60 cents support level is crucial and, if it should prove vulnerable and see sustained trading below, traders may believe that a test of lower value depths from February could be legitimate targets.