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Buying or Shorting Ripple (XRP)? Technical support & resistance

October 15, 2020 09:33
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In this article, ShortSelling will bring up the latest important news connected with the Ripple (XRP) and how to buy or short this cryptocurrency. Where are the current support and resistance levels for XRP?

Shorting is a popular trade technique among numerous traders, gamblers, and individual investors – even if most investors and speculators refer to trading as buying – you can do both at the same plattform. So what is the current status for Ripple, one of the most interesting crypto currencies?

Where is Ripple now?

After reaching a new yearly high of $0.34, the Ripple surge was cut short, as the coin entered a free fall that took it to a new bottom of $0.12. Now, a recovery seems to be starting but there will be certainly lots of opportunities for shorting this cryptocurrency. The cryptocurrency market is easily affected by unpredictable events and most traders are now taking advantage of declining needs.

Ripple is a venture-backed start-up that offers financial settlement services to banks which allows them to make transactions directly and instantly across national borders. Because of this, Ripple is oriented more towards large institutions, rather than to individual users. Ripple allows users to have transactions in 3 to 5 seconds, all accounts and transactions have strong security and they are algorithmically verified. It is important to say that the Ripple protocol has been increasingly adopted by banks and payment networks, even some countries have the interest to accept this cryptocurrency as a legal payment. Some important names include UniCredit, UBS & Santander, Global Payments Steering Group but the partnerships with the likes of Amazon and Alibaba are also very important for the future of this cryptocurrency.

How to short Ripple(XRP)

The cryptocurrency market has posted a minor recovery this month but all major cryptocurrencies remain under the pressure. The price of Ripple is still far away from the major XRP price predictions and according to the rules of technical analysis, the “bearish” trend of this cryptocurrency is still very strong. Shorting the Ripple is basically betting against the Ripple and when you short the XRP you are expecting the price to go down instead of up. So you can make money when the price goes in the opposite direction and for those with great skill is a way to make some good money. One of the easiest ways to short Ripple is through a margin trading platform. Many brokers allow this type of trading, with margin trades allowing for investors to “borrow” money from a broker in order to make a trade. It’s important to remember that there may be a leverage factor, which could either increase your profits or your losses. It’s not a good idea to hold a short position for long periods of time or to leave an open short position with no stop-loss order. Many cryptocurrency exchanges allow margin trading at this stage, with BitMex, AvaTrade, and Plus500 as some popular options. It is very hard to say which platform is the best because this depends on the experience and habits of each investor/trader. Another way to short the Ripple is to sell this cryptocurrency at a price you feel comfortable at, wait until the price drops, and buy the Ethereum again. Becoming profitable “by shorting the Ethereum” requires a strategic plan with short and long-term goals, when you will trade, the amount of capital, trading time frames…

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Technical analysis

The price of Ripple stands around $0.25 and the current situation could be a very good opportunity for long-term investors. So, for just $100, roughly, you can own 400 XRP and Ripple could be an important part of your crypto portfolio.

On this chart (the period from December 2019), I marked major support and resistance levels that can help traders to understand where the price could move. The more often price tests a level of resistance or support without breaking it, the stronger the area of resistance or support is. When the price passes through the resistance, that resistance could potentially become support. Ripple remains in the „neutral- bearish phase“ but if the price advances $0.30 the next resistance could be located around $0.32. The current support level is $0.22 and if the price breaks this level it would be a “SELL” signal and we have the open way to $0.20. If the price drops below $0.20 which represents very strong support, the next target could be located around $0.15.

Conclusion

After reaching a new yearly high of $0.34, the Ripple surge was cut short, as the coin entered a free fall that took it to a new bottom of $0.12. Now, a recovery seems to be starting but there will be certainly lots of opportunities for shorting this cryptocurrency. The price of Ripple stands around $0.25 and the current situation could be a very good opportunity for long-term investors. So, for just $100, roughly, you can own 400 XRP and Ripple could be an important part of your crypto portfolio. Ripple remains in the „neutral- bearish phase“ and if the price drops below $0.20 which represents very strong support, the next target could be located around $0.15.