On the daily chart, XRP broke out of an ascending triangle on October 28 and gained a significant following. The digital asset tested the 50-SMA as a resistance level again and was rejected. The next support level is set at $ 0.228, the 200-SMA on the daily chart.
XRP / USD Daily Chart – TradingView
The MACD is bearish and strengthens as the RSI is on the verge of overextension. The bulls need to break out of the 50 SMA at $ 0.245 and turn it into a support level if they want to try to change the daily downtrend.
XRP is one of the few cryptocurrencies that confirmed a daily downtrend after Bitcoin hit $ 14,000, for the first time since 2018. XRP’s weakness is evident and there are very few signs of a rebound.
XRP Price Analysis: Short Term
On the 4-hour chart, XRP lost the three SMAs and the 26-EMA and 12-EMA. The RSI is on the verge of being oversold. The MACD is within hours of a bearish cross for the first time since October 30th.
XRP / USD 4 Hour Chart – TradingView
The most critical near-term support level is $ 0.23, established on October 30. So far, it looks like XRP could form a potential double bottom, a bullish reversal pattern.
The bulls need to break out of the 26-EMA and 12-EMA and break out of $ 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, the entire cryptocurrency market is likely to remain flat followed by significant volatility. However, past history has shown that these elections are indeed positive over the long term as the market tends to rally significantly shortly thereafter.
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