XRP short-term Price Analysis: 24 November

XRP short-term Price Analysis: 24 November

November 24, 2020

Disclaimer: The findings of the following article attempt to analyze the emerging patterns in XRP’s short-term market and its impact on the price

The XRP market has been grabbing all the attention in the market after being pronounced dead on multiple occasions. The cryptocurrency has reclaimed its third spot on the CoinMarketCap list, as its market cap reached $31.841 billion.

The current price of the digital asset was at $0.7704, and this point could prove a good level to open a short position.

XRP 1-hour chart

Source: XRP/USD on TradingView

The above hourly chart of XRP noted the sudden surge in the value of the asset. After being stuck under the $0.30 level for the longest time and just consolidating, XRP’s price has finally witnessed a sharp rise to the $0.7 level. However, this could also be a point of reversal for the digital asset.

Reasoning

The sudden buying of the digital asset has pushed its short-term bullishness to an extreme as indicated by the MACD indicator. The MACD line was trending higher than the signal line, noting the short-term bullishness was on the rise and has been reaching a value unseen in a long time.

Similarly, the Relative Strength Index has moved above in the overbought zone. The asset has been trending in this zone for quite some time now, and its time it noted a reversal to equalize the pressure in the market. Thus, a strong sign for the price to drop and a short position to make a profit.

Positions

Entry for Short Position: $0.7750
Take Profit: $0.4778
Stop Loss: $0.81
Risk/Reward Ratio: 9.74

Conclusion

The short-term market of XRP has been overbought and subsequently, an increase in the buying pressure is imminent. This would provide the traders with a good opportunity to short the token and benefit from the falling price of XRP. The fall may take the price till $0.4808, the visible immediate support.

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