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XRPUSD - Rallies to Key $0.40 Level as Doubts Linger

   

 

XRPUSD - Rallies to Key 0.40 Level as Doubts Linger
 
Ripple has rallied well in the last few days to retain touch of the key $0.40 level after dropping sharply for several weeks down to its lowest level in two months around 0.32. After moving very little throughout most of October, Ripple enjoyed a surge higher moving to its highest levels in five weeks and moving above the key 0.50 level to above 0.55. Technically any buyers will be keen for XRPUSD to return to back above the 0.40 level as it is presently feeling resistance at that level which may prevent it moving too much higher. For several weeks during October Ripple was able to take a deep breath and enjoy some subdued movement after a wild and volatile ride throughout the second half of September.

 

During this time it was content to trade right around the 0.45 level after the rollercoaster ride which saw it surge higher from near 2018 lows around 0.25 to its highest levels since May above 0.75. As quickly as it reached 0.75, it fell just as sharply and returned to levels below 0.50. The two key levels presently are 0.40 and 0.50. It was back in August that Ripple dropped sharply through any support around $0.43 and $0.40 and fell to its lowest level this year below $0.25. For the following month Ripple seemed to content to trade around 0.30 before its recent explosion.

Throughout May and June XRPUSD fell strongly losing more than 50% of its value in that short period, from the peak near $0.95 in late April to levels above $0.43. Around mid-July it did well to rally higher to reach a one month high above $0.52 however the gains have been far and few between. In January 2018, the price of Ripple reached a new all-time high above $3, according to Coindesk. To say that XRPUSD has struggled this year is an understatement. The $0.40 level is still being closely watched by many market participants to monitor what happens now that it is below this level.

Whenever there is talk about cryptocurrencies, invariably all cryptocurrencies are thrown into the same conversation.  Whilst Bitcoin dominates conversations and commentary, Ripple being the second largest cryptocurrency, also demands some attention.  Cryptocurrency prices have continued to fall sharply despite some potentially positive industry news.  The market movements come as Securities and Exchange Commission (SEC) Chairman Jay Clayton recently announced that he is not comfortable yet with a crypto-based exchange-traded fund (ETF) due to lacklustre market surveillance.  “What investors expect is that trading in the commodity that underlies that ETF makes sense and is free from the risk of manipulation.  It’s an issue that needs to be addressed before I would be comfortable”, said Mr Clayton.  However, New York Stock Exchange (NYSE) Chairman Jeffrey Sprecher suggested a more positive outlook for the future of virtual currencies.  He has said the survival of cryptocurrencies is “unequivocal”.  According to Bloomberg, sources have told the news outlet that U.S. stock exchange Nasdaq intends to go ahead with plans to launch Bitcoin futures despite the significant fall in prices this year.

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The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice. If such information is acted upon by you then this should be solely at your discretion and Valutrades will not be held accountable in any way.

This post was written by Graeme Watkins

CEO Valutrades Limited, Graeme Watkins is an FX and CFD market veteran with more than 10 years experience. Key roles include management, senior systems and controls, sales, project management and operations. Graeme has help significant roles for both brokerages and technology platforms.

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