Ripple price analysis (12-18 July): bulls try for a comeback

XRP has held to the 20-day EMA, but is a short-term relief rally to $0.92 possible?

Asheesh Birla, the general manager of RippleNet at Ripple, wrote in a blog post titled Evolving RippleNet for a Tokenised Future on 7 July that with the increasing adoption of cryptocurrencies, demand for “digital tokens to represent ownership of any type of asset (physical or not) on a blockchain” is on the rise. 

To cater for this increasing demand from enterprises, Birla said:

“Ripple is evolving. We’re expanding from a cross-border payments network to a platform providing tokenised services that will bring crypto capabilities to the enterprise and prepare them for a future where crypto is front and centre.”

Since its inception, Ripple has consistently faced a backlash because many in the crypto community believe that the XRP ledger is centralised and controlled by the company. In response to a question from a Twitter user on this subject, Matt Hamilton, Ripple’s director of developer relations, replied that Ripple was “decentralised just like Bitcoin”, adding:

“XRP was created by bitcoin developers as a ‘better bitcoin’ once they realised that bitcoin‘s energy usage was not scalable.”

Will the expansion of Ripple into tokenised services enthuse investors, resulting in a relief rally in XRP’s price? Read the Ripple price analysis to find out.

Ripple technical analysis: weekly chart

The bears tried to pull XRP’s price below the 50-week simple moving average (SMA) last week but failed. This suggests that bull investors are attempting to defend the 50-week SMA. The XRP/USD pair closed down 8.58% to end last week at $0.63285, according to the weekly candlestick chart on Currency.com.

The down-sloping 20-week exponential moving average (EMA) and the relative strength index (RSI) in negative territory indicate an advantage to the bears. If the price turns down from the current level and plummets below the 50-week SMA, the selling could intensify, opening the doors for a decline to $0.36.

The bulls are likely to have other plans, however. They will try to push XRP’s price above the 20-week EMA. If they succeed, the pair could pick up momentum and rise to the target objective at $1.09.

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Ripple technical analysis: daily chart

XRP’s price broke out of a falling wedge pattern on 3 July, but the bulls have not been able to capitalise on this advantage and push the price above the 20-day EMA. This suggests that the bears are attempting to stall the relief rally at the 20-day EMA.

A minor positive in favour of the bulls is that they have not given up much ground and the price is clinging to the 20-day EMA. This indicates that bulls are not closing their positions, as they expect the price to move higher.

A breakout and close above the 20-day EMA will be the first indication of strength. The XRP/USD pair could then rally to the 50-day SMA where bear investors may again mount a stiff resistance. If the price turns down from this level and breaks below the 20-day EMA, it will indicate that traders are dumping their positions on relief rallies.

Conversely, a breakout of the 50-day SMA could attract further buying, propelling the pair to $0.92473.

How to trade Ripple this week

Ripple price analysis shows that bulls are attempting to drive the price above the 20-day EMA. If they manage to do that, it will suggest accumulation at lower levels. That will increase the possibility of a strong relief rally to the overhead resistance at $0.92473. 

Conversely, if the price fails to rise above the 20-day EMA, short-term bull investors may dump their positions, which could result in a drop to $0.51.

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 feel about losing money.

Trade ripple to US dollar: XRP/USD chart

Ripple to US Dollar
Daily change
0.37763
Low: 0.36964
High: 0.39039

Further reading

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