Selling Builds After Weekend Short-Term High Hit

6 July 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 traded ever so slightly above the 70 cents ratio on the 4^th of July before starting to see a wave of selling develop. As of this morning, XRP/USD is traversing near 67-and-a-half cents, and technical traders have important considerations to ponder. Ripple seems to have a lot of resistance around 68 and 3/10 cents. Yes, XRP/USD traded above this mark yesterday, but after falling through support near the 68 cents level, the digital currency challenged the 64 cents level below for a quick spell. While this support ratio held, it likely caused traders to look at the 63 cents value which has proven durable as a barrier to lower prices since the end of June.

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If downward momentum continues in XRP/USD and negative sentiment builds in the broad cryptocurrency market, traders may suspect that additional bearish targets could be produced. XRP/USD, like the broad cryptocurrency market, did well over the long U.S holiday weekend. On the 2^nd of July, XPR/USD was trading near support around the 0.63800, but then was able to climb and touched the 0.70800 on Sunday.

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The problem for XRP/USD is that it continues to produce incremental reversals higher, but has not demonstrated an ability to sustain its values above important junctures. This failure to maintain higher prices continues to chip away at speculative bullish sentiment which is hoping for a solid trend upwards to emerge. The reversals lower after incremental climbs are made does not help the technical outlook either. If current support near the .67010 levels is proven to be vulnerable, additional selling can be expected to potentially mount.

A one-month technical chart illustrates that XRP/USD continues to stay within the lower depths of its price range, and this inability to create an upward surge adds onto the notion that gains have been frequently met by reversals lower. Until XRP/USD can produce strong velocity higher and maintain prices above resistance levels with stamina, behavioral sentiment will remain bearish.

Traders who sell XRP/USD near its current price vicinity on slight moves higher may appear to be making the logical speculative wager. Traders should not be overly greedy if they are pursuing targets below and be willing to cash out winning positions. A solid dose of patience and adequate management of leverage could prove to be crucial. From a risk/reward perspective technically, it seems that being a seller currently may have the better advantage.