The bloodbath continued among major cryptocurrencies and Ripple just broke below a key support level. Not only that, the US equities are taking a hit as well. Here’s an overview.
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Cryptocurrencies and US Equities Correlation?
We saw massive drops across cryptocurrencies as well as in the US equities market on Monday. The US stocks fell the most since 2011, with the Dow sinking more than 1,100 points. It is interesting that the cryptocurrency market is getting cues from the US equities market and showing some correlation in that sense.
XRP/USD Breaks Below Key Support
Ripple has dropped over 80% from the all-time high levels. Versus the USD, XRP appeared to be supported by the 78% Fibonacci retracement level 0f 0.7145. This level is important because it also acted as a support back in December 2017, when XRP/USD was just getting started on its way up to the all-time highs.
The pair has also broken below the daily Ichimoku cloud. However, the Chiko span remains above it.
These are the times when the markets get fueled by fear, and for sure, the drops in the US equities market doesn’t help the general market sentiment. A break below the key support levels could indicate further bearish moves. However, if the support levels hold, we could see a period of consolidation followed by an erase of losses. The next support level for XRP/USD is at 0.22, which is where it consolidated for 7 months since its ICO back in May 2017 before the massive uptrend started.
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Kiana
#1 Best Selling Author. Helping you accelerate your retirement with Triple Compounding™ Former engineer on a mission to help 1 million households take control of their finances. Founder & CEO of Invest Diva.
