Cryptocurrencies are suffering a sell-off: it’s a Santa rally but just in reverse. Why are digital coins coming down?
Ripple was initially guarded against the fall, holding its ground while Bitcoin, Ethereum, bitcoin cash and Litecoin were all tumbling down. However, the sell-off has arrived at XRP/USD as well.
Here is the Ripple/USD chart, with descriptions of the levels following:
XRP/USD support levels
At the time of writing, XRPUSD is trading around $0.91, just two cents above a critical level. 0.89 is where the price of Ripple stalled in mid-December and the battle to hold onto this level continues.
After hitting the high of 0.89 in the middle of the month, XRP/USD traded in a clear range, with support coming in at $0.66. This is a critical cushion if 0.89 fails.
Further below, we find $0.4450, a level that worked as a stepping stone for the pair on its way up and may serve to slow down a downfall.
And before the big rally to the upside, Ripple was trading at a limited yet clear range between $0.20 and $0.28, but from current levels, it would represent a total wipeout.
XRP/USD resistance level
If this cryptocurrency holds onto 0.89 and continues recovering, the round number of $1 could work as a psychological point of resistance.
Further above, $1.15 was a more significant line of resistance in recent days. The last level to watch is the swing high of $1.4 seen just before the big crash.
It is important to note that Ripple enjoyed a boost from banks: Several banks in South Korea and Japan are testing Ripple’s blockchain technology for their use. This could help XRP stabilize while other coins continue crashing.
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