Ripple price recovers some of yesterday’s sharp losses amid an improvement in the sentiment across the cryptocurrencies. Investors continued yesterday to dump risky assets from stocks, commodities and cryptocurrencies and turn to the safe-haven USD. Risk-off sentiment acts supportive for the USD. XRPUSD rejected for the second day at the 100-day moving average and sellers took control pushing the price from $0.2360 down to 0.2200.
Ripple price is 16.83% higher since the beginning of the year but is 10.44% lower the last week. The correction from the recent highs accelerated after the cryptocurrency broke below the 100-day moving average on Monday. Ethereum is the outperformer today adding 5.51% at $337.80, while Bitcoin is 1.69% higher at $10,406.
In institutionalization news, the European Commission (EC) announced yesterday a package of legislative proposals for the regulation of cryptocurrencies, to create a legal framework for regulatory and financial supervisors in the EU.
Ripple price is 1.66% higher at 0.2251 as the number four cryptocurrency by market cap attempts a rebound from two-month lows. Short term outlook is bearish, and a move towards the 200-day SMA can’t be ruled out. A break below 0.2375 – the 200-day moving average – would open the way for 0.2018 the low from July 24.
On the upside, initial resistance for XRPUSD stands at 0.2272 the daily high. The critical resistance, as I mentioned above, is the 100-day moving average at 0.2375. A break above might challenge 0.2485 the top from September 21.
Traders should be cautious at current levels as Ripple is looking for direction. A break above the 100-day moving average or below the 200-day moving average would provide a credible entry signal.