(DAILY NOTION): XRP/USD – Bearish Sentiment Still Rules. Next Mover: Upcoming U.S. Data

Source: Yahoo Finance

On Monday, XRP/USD dipped below the 200-bar Simple Moving Average (SMA) but it bounced off the 0.4980 level.

During early hours of trading today, it dropped to 0.5170. Support can be found at 0.5000 and later 0.4308, which is a descending trend channel formation that has been established since Nov 26. Analyst estimate that if it fails to bounce off 0.4308, it may then aim for the 0.400 level.

The Moving Average Convergence Divergence (MACD) is showing bearish signs and the Relative Strength Index is at 33, close to an oversold condition.

Next market mover would be the upcoming U.S. data such as the initial jobless claims, gross domestic product (GDP), core Personal Consumption Expenditures (PCE) price index, new home sales, and house price index (HPI) to give traders a better picture of the U.S. economy. Would the initial jobless claims continue to rise this week? The low liquidity market is currently already jittery from news about a new coronavirus strain in Britain.

A risk off sentiment in the market could further lure investors towards cryptocurrencies, which will then benefit XRP/USD. 

XRP/USD (as of Dec 22, 2020, 10.18 a.m., GMT +8) - $ 0.4879