Bitcoin recently went from all guns blazing to an abrupt drop to $9.5k. And since the Altcoins imitate the BTCUSD, they suffered the same blow. In the case of Ripple, the shock was even more profound.
Ripple fell by 4.75%, while in the case of BTC, it was approximately 3%. This drop, however, made XRPUSD enter a favorable investment territory gradually.
Technicals point at a further bearish move for XRP
Let’s take a look at the hourly timeframe for XRPUSD. Source: TradingView.com
Despite the occasional spur in bulls, Ripple is on a bearish territory for some time now.
Currently, Ripple is trading at $0.20142, which the just below the 20-period Exponential Moving Average. This region would act as a stiff resistance.
XRPUSD would find a decent support level at $0.19802.
Short-term trading strategies for XRPUSD
Traders might get an excellent chance to enter a ‘short’ position in XRP. If Ripple rebounds from the 20-period EMA and starts falling lower, that would be the entry point for the trade. Therefore, the entry would be around $0.202, with the targets at $0.199 and $0.19802.
Traders must keep a close watch on Bitcoin as well. As any sudden increase in BTC prices would propel XRPUSD higher.
Is there an upswing possible for Ripple in the short run
Ripple tends to exhibit sudden outbursts of momentum. It could have a bullish-phase if it manages to move up and reach the upper spectrum of the Bollinger Bands.
If Ripple breaks over the $0.206 mark with rising volumes, it will move closer to the $0.22 mark. However, in the current scenario, that seems to be less likely.