Cryptocurrency Market's Heavy Losses; Ripple (XRP) Price Slump
Cryptocurrency & Ripple News and Talking Points
- Cryptocurrency market a sea of red as sellers take control.
- Ripple slides through support with ease.
Cryptocurrency Market Hit by a Wave of Selling
A warning that future sales to the cryptocurrency mining community from GPU giant Nvidia has seemingly sparked a heavy sell-off in the market with double-digit losses common across the sector. While Nvidia said that demand for GPUs was stronger-than-expected in the first quarter, the company warned that sales to the crypto market will likely fall by around two-thirds in the current reporting period. The sell-off has caused the sector’s market capitalization to fall by $40 billion to just under $400 billion.
We will be discussing a range of cryptocurrency charts and price set-ups at our Weekly Cryptocurrency Webinar on Wednesday at 12:00.
Ripple Continues to Fall – More Losses on the Horizon?
The third-largest cryptocurrency my market size, Ripple, continues to give back most of its April rally as support levels fail to hold.XRP is already under downside pressure on worries that the SEC may classify the token as a security, a situation that would further adoption of XRP by other exchanges unlikely. The April 25 swing low at $0.75 provided little support while on the four-hour chart the token currently trades below all its daily moving averages, another negative set-up. A gap on the April 12 candle around $0.60 is the next likely level of support.
We have also noted in the past that a heavy sell-off in Ripple may become self-fulfilling due to retail positioning.
IG Client Sentimentshows clients remain overwhelmingly long of Ripple (XRP) with the ratio of traders long to short currently at over 26 to 1. Download the free report to keep in-touch with current sentiment changes
Ripple (XRP) Price Chart in US Dollars(March 28 – May 11, 2018)
Cryptocurrency Trader Resources – Free Practice Trading Accounts, Guides, Sentiment Indicators and Webinars
If you are interested in trading Bitcoin, Bitcoin Cash or Ethereum we can offer you a wide range of free resources to help you. We have an Introduction to Bitcoin Trading Guide along with a Free Demo Account. In addition we run a Weekly Bitcoin Webinar and have an IG Bitcoin Sentiment Indicator to help you gauge the market and make more informed trading decisions.
What’s your opinion on the latest cryptocurrency sell-off? Share your thoughts and ideas with us using the comments section at the end of the article or you can contact me on Twitter @nickcawley1 or via email at firstname.lastname@example.org.
--- Written by Nick Cawley, Analyst.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.