Source: PaxForex Premium Analytics Portal, Fundamental Insight
After the XRP/USD was removed from many regulated cryptocurrency exchanges amid its legal battle with US regulators, trading will resume on July 28th, 2021. Coinbase made a transfer of 61,999,980 XRP worth $38,440,048 between internal wallets at the exchange. The fight against the SEC allegations will continue, with some legal experts suggesting the claims are baseless and display the lack of understanding by regulators and their ignorance. Ripple plunged to nearly 0.1700 before sky-rocketing to just shy of 2.0000 before Bitcoin plunged the entire market into a deep correction.
Following the sell-off, buying opportunities continue to flare up, and patient investors might want to consider XRP over market-cap leaders Bitcoin and Ethereum. The upside potential for the XRP/USD is greater than the downside risk, but traders should remain patient as volatility may resume while buyers and sellers battle for the 0.6000 level. A sustained moved above it with the CCI accelerating above -100 can lead this Top 10 cryptocurrency pair into a reversal rally recovering 50% of its correction.
The forecast for the XRP/USD is slowly turning bullish after pausing its correction near the 0.6000 level with a sideways trend. Traders should expect more massive price swings, as institutional clients show less appetite for the cryptocurrency sector following its 50%+ drop. The Kijun-sen flatlined, but the Tenkan-sen drifts lower in a narrow trend, with the Ichimoku Kinko Hyo Cloud maintain downside pressure. More volatility is likely, but the overall outlook is turning a bullish corner. The CCI moved into extreme oversold territory, with more downside potential. Can bulls prevent another leg lower in the XRP/USD and force price action into its horizontal resistance area? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.
Should price action for the XRP/USD remain inside the or breakout above the 0.5040 to 0.6300 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.5890
- Take Profit Zone: 1.1030 – 1.2415
- Stop Loss Level: 0.4500
Should price action for the XRP/USD breakdown below 0.5040, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.4500
- Take Profit Zone: 0.2970 – 0.3650
- Stop Loss Level: 0.5040
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio.