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Crypto Market Review, Nov. 25

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Arman Shirinyan

Short-term rally has been enough to bring hope back to investors, but there is still a long way to go

Contents

  • BNB’s short-term rally slows
  • XRP’s pattern is playing out

The end of the week on the cryptocurrency market often shows nothing but dull performance on most assets as institutional investors and derivatives gradually close their operations. Unfortunately, this week is no exception to this rule, and here’s why.

BNB’s short-term rally slows

After Binance filled the SAFU fund with $1 billion, BNB immediately responded with a solid 11% growth in a matter of hours. Unfortunately, the euphoria did not last as long as the market would have liked.

The 200-day moving average, which often serves as a strong barrier for assets, struck again, causing a delay in the Binance token’s rally. The cryptocurrency has been consolidating around the level for the past two days.

BNB chart
Source: TradingView

However, a positive outcome is still possible, considering the mostly positive sentiment surrounding BNB and Binance’s business in general, as opposed to FTX’s collapse caused by the lack of proper risk and fund management.

By strengthening the SAFU fund’s ability to cover almost any fluctuations in the market, Binance practically increases the resilience of its ecosystem as a whole, making BNB more attractive from an investor’s point of view.

Unfortunately, the current state of the cryptocurrency market is the only factor keeping BNB from entering a full-fledged recovery rally that would make it one of the most profitable assets in the industry.

XRP’s pattern is playing out

The ascending triangle pattern we mentioned in our previous market reviews finally played out after XRP successfully broke through the upper boundary of the formation and swung to the next resistance level at $0.41.

The next target to acquire will be the $0.43 price level, slightly above the 50-day exponential moving average. The indicator acts as a guideline for assets in a downtrend. Unfortunately for XRP holders, a confirmation of the pattern does not necessarily mean a complete trend reversal: fundamental, technical and financial factors will be decisive points for the current trend, rather than a short-term movement on the market.

In the most positive scenario, we will most likely see the edge-to-edge move of XRP from the 50-day EMA to the 200-day EMA. Such a scenario would bring XRP investors a profit of 13% from the current price level.

Unfortunately, only a breakout of the 200-day moving average would lead to a complete trend reversal, meaning XRP would need to find more than 500 million in buying power to push it above local resistance levels and trigger a potential trend change.

The cryptocurrency market is still recovering from the FTX crash, despite most of the damage being absorbed by investors. The long-term effect of the last market crash will ring a bell until the next supercycle in the digital asset industry.

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