As Cryptocurrencies experience a renewed bout of strength today we are going to be taking a look at another digital asset today in the form of XRP.
Bitcoin has rallied from lows and has passed above the $8,000 mark and as is typical in the digital currency market we are seeing the rest of the cryptocurrencies experiencing a similar rally.
However, the standout for the day is XRP, which has seen a rally in excess of 20% at its peak. We have also seen the digital currency test a key level in that of $0.40, since then we have seen a drift lower as to be expected from a big momentum based move higher, potentially on some profit taking, and we are now sitting just below the $0.38 level, still +15.33% on the day.
The $0.40 is a key level both in terms of it being a key psychological level as well as it being a significant resistant level as can be seen on the chart from the orange dashed line.
Currently where the price is sitting there is a little support from the previous highs of April, which is keeping the $0.40 handle very much in focus. However, we could see a little continuation of the slide before another attempt to breach that level.
By Alex Simcock
This article is written by a GO Markets Analyst and is based on their independent analysis. They remain fully responsible for the views expressed as well as any remaining error or omissions. Trading Forex and Derivatives carries a high level of risk.
Sources: Go Markets, MetaTrader4, Tradingview, Bloomberg