XRP/USD has reversed higher in the past week-and-a-half and looks ready to begin August trading near one-month highs.
Having achieved a high of nearly 76 cents in the past day, XRP/USD is trading near the 73 cents juncture. The month of July saw a low of nearly fifty-one cents on the 20th of July. On the 22nd of June, XRP/USD also traded near these low water marks. Like the broad cryptocurrency market, Ripple remains locked within its mid-term bearish trend which saw a high of nearly 2.00000 on the 13th of April.
However, XRP/USD has seen a bullish trend certainly develop since the 20th of July and the high around 0.764500 on the 29th of July is intriguing. Ripple is trading within a strong correlation to the broad cryptocurrency market, and its lows on the 20th of July and yesterday’s high match many other cryptocurrency charts technically. The last time XRP/USD traded near its current price levels was on the 21st and 29th of June.
Importantly, the last time XRP/USD traded above 80 cents was on the 18th of June. Breaking below the 80 cents support barrier in June seemed to spur on additional selling pressure which eventually culminated in lows around the 22nd of June near the 51 cents juncture. The 80 cents mark now stands in the way of XRP/USD as important resistance technically as traders try to gauge their short-term and mid-term outlooks for August.
Breaking past the 80 cents resistance barrier and being able to sustain prices above this level could allure XRP/USD bullish speculators who are still waiting for more positive momentum to develop before they commit to long positions. Having suffered from an almost three-month bearish cycle, the trading of XRP/USD in the last week of July is positive, but it may not be enough yet to change overall sentiment. XRP/USD will have to prove it can trade above the 80 cents level for duration of more than a few days most likely before skeptical bullish traders believe it is safe to pursue higher ground.
Ripple Outlook for August:
Speculative price range for XRP/USD is 0.50000 to 0.99000.
The past week in XRP/USD has certainly fanned some positive momentum, but the buying needs to show that it can sustain its velocity. Ripple’s reversal lower after making a high on the 29th of July may make some bearish traders interested in speculative selling positions. If the 70 cents support level fails to hold and is beaten backwards, the 68 cents mark could be viewed as a target.
Having achieved a flourish higher in the past week, as August gets ready to start, the door will remain open to negative sentiment if current prices are not able to be sustained. Selling pressure in XRP/USD and a move below the 65 cents ratio could set off additional selling, particularly if the broad cryptocurrency market also turns bearish again. Having touched a low of nearly 51 cents in July, sellers may believe bearish momentum could produce those prices again, but this may prove to be overly ambitious.
If XRP/USD is able to puncture the 80 cents mark and sustain the higher value, speculative traders who grew nervous the past couple of months may start to join the party based on the belief the bearish trend may be coming to an end. A move higher and a test of June values could set off a test where the junctures of 82 to 85 cents becomes important. A move above 85 cents with sustained velocity would certainly create a target of 90 cents for many traders. If XRP/USD can prove bullish and break the 93 cents barriers higher last seen on the 9th and 14th of June, this could mean Ripple could challenge the 1.00000 value quickly.