Ripple price analysis (20–26 September): is a fall to $0.74 likely?
Ripple could plummet to $0.74 in the next few days
Ripple’s legal team has no plans to settle its ongoing lawsuit with the US Securities and Exchange Commission (SEC), according to Charles Gasparino, a senior correspondent at Fox Business Network.
Ripple believes that the chairman of the SEC, Gary Gensler, will drop the lawsuit, as he is known to support innovation.
Goldman Sachs expert Andrew Lokenauth is bullish on Ripple because of its speed and reduced risks and he considers Ripple’s XRP as a replacement to the SWIFT platform. Speaking to the publication Cryptopolitan, Lokenauth said: “Ripple will redefine online payments, and I believe that Ripple XRP will likely IPO and go public once its SEC lawsuit is resolved,” Coindesk News reported.
On the operations front, Ripple said in a blog post that UK-based payments company Paydek has tied up with Ripple to facilitate timely payment for freelancers in Africa and Latin America.
Is the drop in XRP’s price over or could it fall to much lower levels? Read the Ripple price analysis to find out.
Ripple technical analysis: weekly chart
The uncertainty has resolved to the downside this week and the price has dipped to the strong support at the 20-week exponential moving average (EMA). This is an important support for the bulls to defend because if it gives way, the pair could drop to the 50-week simple moving average (SMA).
The flattening 20-week EMA and the relative strength index (RSI) near the midpoint suggest a few weeks of range-bound action.
If the price rebounds off the 20-week EMA, it will signal that bulls are accumulating on dips. The buyers will then again try to push XRP’s price toward $1.41498. A breakout and close above this resistance will signal the possible resumption of the uptrend.
Ripple technical analysis: daily chart
XRP’s price has broken below the $1.34174 to $1.04 range it had been stuck at for the past few days. This suggests that the status of equilibrium between buyers and sellers has tilted in favour of bears.
The moving averages are on the verge of a bearish crossover and the RSI has dipped into the negative zone. This suggests that bears are in control.
If bears sustain the price below the 7 September low of $0.96, the selling could intensify. The pattern target of the breakdown from the range is $0.74. If this support cracks, the decline could extend to $0.69.
Any recovery attempt from the current level is likely to face strong selling at $1.04. If the XRP/USD pair turns down from this level, the possibility of a deeper correction increases.
This negative view will invalidate if the price turns up from the current level and rises above the overhead resistance zone at $1.04 to $1.12.
How to trade Ripple this week
The Ripple price analysis shows that bears have pulled the price below the critical support zone of $1 to $1.04. This has opened the doors for a possible drop to $0.74. The bulls will have to push the price back above the 20-day EMA to indicate that the decline could be over.
Whatever the outcome might be, your decision to trade depends on your attitude to risk, your expertise in this market, the spread of your investment portfolio and how comfortable you are about losing money. This analysis does not constitute investment advice. It’s important to make your own analysis before deciding to invest. You should never invest more than you can afford to lose.
Trade Ripple to US Dollar - XRP/USD chart
Further reading: What is XRP? Your simple guide to Ripple’s cryptocurrency
Further reading: How to trade Ripple: the ultimate guide