Ripple (XRP) May Have Room For Further Downside

Ripple (XRP) has been the target of negative news and bias for long but positive impetus in late 2017 pushed the price of a stunning high of $3.65 which surprised most investors. While Ripple (XRP) is a coin with exceptional potential and market value, the price does seem to be overstretched at its current price of $0.81 and may have room for further downside. Ripple (XRP) also has to reach the bottom of the channel yet as can be seen in its movement against Bitcoin (BTC) on the XRP/BTC chart.

The cryptocurrency recovered rapidly at early signs of a trend change but the momentum was short lived as news regarding Ripple (XRP) being termed as security began circulating leading to selling at the top of the channel. While most professional traders understand that such negative news or FUD often coincide with movements on the chart, for most first time investors such news can make them quit on a cryptocurrency forever resulting in lost gains on a coin with immense potential.

Ripple (XRP) is currently one of the few projects in the market with the most use cases and practical applications. It is perhaps the cryptocurrency project with the most partnerships from Bank of America to Western Union, MoneyGram, Santander, LianLian and the list goes on. This is another reason why investors are so eager to jump on Ripple (XRP) bandwagon at the first sight of a possible recovery. The cryptocurrency has made exceptional returns in the previous years and has one of the smartest minds in the market working on it.

The price recently took a big hit as can be seen in the XRP/USD chart but the recovery was quick. The dump took the price close to $0.50 which we believe to be a reasonable price for a short term correction. The price could come all the way down to $0.30s levels but given the present euphoria in the market, that does not seem much likely. A fall from the current price of $0.81 seems to be in order and will likely stretch over the new few days. It should be noted though that the fall has not been as aggressive as has been in the climb. The price has surged in the form of big long candles but the decline was slow but steady as we have seen before. We expect similar price movements to follow this time around with the price settling around $0.50 levels over the next few days. However, a fall below $0.50, if it happens, will be a quick and sharp one.

The weekly chart presents ample room for a sell position with tight stop losses. The risk/reward seems favorable but use of leverage is not recommended. The MACD also indicates room for further downside which could translate into a short opportunity albeit a quick one. This could also be an opportunity for further accumulation as Ripple (XRP) continues to be a high performing coin with good prospects. The team is a very ambitious one and is constantly on the lookout for new partnerships and deals.

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