More often than not, cryptocurrency prices gravitate towards big-round-numbers. That’s what we are currently seeing from Ripple XRP (-4.03%) and the $0.50 area. A bearish sweep during the U.S. overnight sent prices from $0.57 to $0.51 in a swift sell-off. Now, XRP is in heavy rotation between $0.51-$0.53, with the 4-hour downtrend still intact.
On the broader crypto front, the past 24 hours have brought more pain to the asset class. Below are a few of the highlights:
- Bitcoin BTC (-2.70%) is in the red and has fallen beneath $30,000. Remember, a key 62% macro Fibonacci support level is present at $27,221.
- Ethereum ETH (-0.97%) is down moderately and testing the $1,800 level. In a Live Market Update from 10 days ago, I outlined a shorting opportunity in ETH. The trade has hit its take profit, cashing in upwards of 16%.
- Tron TRX (-4.94%) is in a relative freefall and testing the $0.05 handle. Again, I issued a long trade recommendation for the TRX/USD from $0.05 last week. The trade is now live and only time will tell if it’s a winner or loser.
- Polkadot DOT (-4.13%) and Dogecoin DOGE (-1.62%) are under continued pressure. The big-round-numbers of $10.00 for DOT and $0.15 for DOGE are quickly coming into play.
All in all, cryptos are in a rough position and have given back a large portion of last spring’s gains. If we don’t begin to see some bids hit the market at some of these organic support levels, 2H 2021 may prove to be an especially trying period for crypto bulls.
Let’s dig into the technical picture for Ripple (XRP) and see where this market stands.
Ripple XRP Trends South, Tests The $0.50 Area
About 24-hours ago, I put out a scalping plan for XRP. As of now, the trade is live and has produced solid gains. If you missed it, feel free to check out the idea here.
Overview: Right now, a moderately stronger dollar is negatively impacting crypto valuations. The USD Index is now trading over 93.00. With the July Fed meeting due up next Wednesday, the entire asset class is likely to experience sustained volatility. For XRP, $0.50 is a key level; if it’s taken out, be prepared for a swift descent and significant losses.