On the daily chart, XRP broke out of an ascending triangle pattern on October 28 and got significant follow-through. The digital asset has re-tested the 50-SMA as a resistance level and got rejected. The next support level is established at $0.228, the 200-SMA on the daily chart.
XRP/USD daily chart – TradingView
The MACD is bearish and gaining strength while the RSI is on the verge of overextension. Bulls need to crack the 50-SMA at $0.245 and turn it into a support level if they want to try changing the daily downtrend.
XRP is one of the few cryptocurrencies that has confirmed a daily downtrend after Bitcoin touched $14,000, for the first time since 2018. The weakness of XRP is apparent and there are very little signs of a rebound.
XRP Price Analyis: Short-Term
On the 4-hour chart, XRP lost the three SMAs and the 26-EMA and the 12-EMA. The RSI is on the verge of being oversold. The MACD is hours away from crossing bearishly for the first time since October 30.
XRP/USD 4-hour chart – TradingView
The most critical support level in the short-term is $0.23 which was established on October 30. So far, it seems that XRP could be forming a potential double bottom, a bullish reversal pattern.
Bulls need to climb above the 26-EMA and the 12-EMA and crack $0.243 to confirm a 4-hour uptrend.
Trading volume is decreasing which means the current bearish price action is weaker than before, making the potential double bottom a real possibility.
Due to the upcoming US presidential election in two days, is likely that the entire cryptocurrency market will remain flat followed by significant volatility. However, past history has shown that these elections are actually positive in the long-term as the market tends to experience notable rallies shortly after.
Nexo – Your Crypto Banking Account
Instant Crypto Credit Lines™ from only 5.9% APR. Earn up to 8% interest per year on your Stablecoins, USD, EUR & GBP. $100 million custodial insurance.
Ad
This post may contain promotional links that help us fund the site. When you click on the links, we receive a commission – but the prices do not change for you! 🙂
Disclaimer: The authors of this website may have invested in crypto currencies themselves. They are not financial advisors and only express their opinions. Anyone considering investing in crypto currencies should be well informed about these high-risk assets.
Trading with financial products, especially with CFDs involves a high level of risk and is therefore not suitable for security-conscious investors. CFDs are complex instruments and carry a high risk of losing money quickly through leverage. Be aware that most private Investors lose money, if they decide to trade CFDs. Any type of trading and speculation in financial products that can produce an unusually high return is also associated with increased risk to lose money. Note that past gains are no guarantee of positive results in the future.
