After the surge in ripple price yesterday, the cryptocurrency is under selling pressure in today’s trading against the US dollar. XRPUSD is down by over 3.5% as it trades around $0.2150.
Yesterday’s rally was brought about by news that Binance will be adding ripple to its lost of futures trading pairs. It is the world’s largest cryptocurrency and bitcoin exchange in the world. Consequently, the announcement led to a surge in demand the price of ripple.
Today’s price action could be nothing more than just a technical pullback. After all, the $0.2000 handle was a major resistance level. The cryptocurrency may take its cue from the dollar today as the US releases the much-anticipated ISM non-manufacturing PMI report at 3:00 pm. The forecast is for a reading of 54.5 for December to follow its previous reading at 53.9. A figure lower than the forecast could help ripple price to resume its rally as it could dampen demand for the dollar.
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On the other hand, better-than-expected US data could be bullish for the dollar. This means that we could see further weakness on XRPUSD. On the 4-hour time frame, the cryptocurrency could find support at the rising trend line (from connecting the lows of January 3 and 6). Reversal candles around $0.2050 could confirm that weakness on XRPUSD today was indeed nothing more than just a pullback. On the other hand, a strong bearish close below this price may hint at more selling pressure. We may then see the cryptourrency re-test the $0.2000 handle for support.