XRP/USD Weekly Update - Market Breakdown
XRP/USD continues to intrigue the crypto world as it remains one of the most exciting yet volatile currencies as we head into 2021.
Last week we covered the latest release of Ripple's new cryptocurrency Spark, which was airdropped on all major exchanges, including Coinbase & Binance. We also covered a Market breakdown of XRP/USD, which is seen in the chart below.
Going into the full festive period, we do expect to see the overall market slow down, and begin to pick up in the early part of the New Year, this is where we expect XRP to slowly find its way down to the golden region, between $0.20 - $0.25.
As we saw over the past week, XRP/USD was one of the most volatile pairs around, spiking up toward the $0.65 area, before tumbling back down to $0.45 within a matter of days. This was due to a very strong support/resistance level at $0.63, which was also a major bounce point in the late 2018 move we covered last week.
Below we show the XRP/USD full chart on the Daily timeframe, before talking through the possible price movements before the new year is up.
XRP/USD is looking to form a new downward trend, as it descends with lower highs, before solidifying the trend we would like to see another high at around the $0.55 level, before dropping back down to $0.46 or below.
As we can see from the chart above, there has now been a 3 point touch of the $0.46 level, which signifies a high level of support & resistance, which could come in to play if price falls below and retests this area, we then consider the levels of $0.20 - $0.25 are the next target.
Our prediction of the movement of the highly volatile cryptocurrency is shown above, as we believe a retest of the $0.46 region to be highly likely before we see the final push down to the $0.25 golden zone.
This all depends on what price does at $0.55, as it could break this area of resistance and then retest, which could result in a breakout above the $0.62 region if enough momentum was picked up.
We could also see a break of the $0.46 level within the next few days if XRP continues with its current momentum and if this is the case we could see the $0.25 region much sooner than expected!
Whatever the outcome, this next week is crucial and could change the future of this particular cryptocurrency. We will certainly be keeping a close eye and possibly even updating you over the weekend if anything blows up.