RIPPLE FEELING THE BURN
On Wednesday, the selloff in the cryptocurrencies market continued. Bitcoin settled below the $10,000 mark, while ethereum fell by more than 15% to end the day below the $900 mark. Ripple too fell sharply reaching a low of $0.86.
The selloff was attributed to the statements made by Kim Dong-yeon, the South Korean finance minister who said that the country was still exploring shutting down the exchanges. This was in continuation of similar reports that emerged last week.
Traders were also concerned about the news from France where a cryptocurrency sceptic was appointed to lead a taskforce on these currencies.
In total, more than $50 billion in value has been lost in the past two weeks.
Traders will pay close attention to news coming from South Korea, China, and other major countries.
After yesterday’s sell-off, Ripple established a double bottom position at the 0.8677 level. It then started moving higher and is currently trading at the 23.6% retracement level of 1.4412.
If the negative headlines are contained, its price may move higher with the next target being the 1.800 level. This is an important technical and psychological level.
The alternative scenario is where the selloff continues which would make the currency to test the $0.632 level.