#DollarRally110 $XRP
Here’s a short sell trade setup for XRPUSDT:
Current Market Observations:
1. Overbought Condition: RSI is at 87.86, indicating the market is in the overbought zone and a pullback is likely.
2. Resistance Levels:
$2.90 - $3.00 is a strong resistance zone due to heavy sell orders.
The price could reverse after testing this level.
3. Volume Decline: If the price rises but the volume starts declining, it signals potential weakness.
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Short Sell Trade Setup:
Entry:
Ideal Entry Zone: $2.90 - $3.00 (near resistance levels).
Stop-Loss:
Above Resistance: $3.05 (to confirm a breakout invalidates the trade setup).
Targets:
Target 1: $2.75 (nearest support level).
Target 2: $2.60 (stronger support zone).
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Confirmation Indicators:
1. Price Action: Look for bearish candlestick patterns (e.g., bearish engulfing or shooting star) near $2.90 - $3.00.
2. RSI Divergence: If the price makes a higher high, but RSI creates a lower high, it indicates bearish divergence.
3. MACD Cross: A bearish MACD crossover on the 4H time frame strengthens the short entry.
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Risk Management:
Position Size: Use risk management to ensure you’re risking only 1-2% of your capital on the trade.
Risk-to-Reward Ratio: Aim for at least a 1:2 or 1:3 ratio for a viable setup.
DYOR!
Let me know if you'd like additional insights or further analysis!