Ripple price analysis (13–19 September): Is $1 under threat?
Ripple could remain weak in the short term
Ripple’s (XRP’s) price surged 14% within minutes on 10 September when it appeared on Coinbase Pro for a short time. However, the crypto exchange clarified that a technical issue caused the coin to appear on its professional trading platform and it was removed. No trades were executed during that period. The coin remains suspended for trading at Coinbase.
In a huge positive for XRP, the e-commerce giant Rakuten’s exchange said XRP trading would resume on 8 September.
In an official release, Rakuten Wallet said trading in XRP was temporarily suspended on 24 December 2020 because of liquidity concerns. However, the company now believes that “liquidity can be secured and stable price delivery to customers is possible” – hence trading is being resumed.
Could XRP’s price attract strong buying at lower levels? What are the critical support levels to watch out for? Read the Ripple price analysis below to find out.
Ripple technical analysis: weekly chart
XRP’s price broke above the overhead resistance at $1.34174 last week, but higher levels attracted strong selling from traders. The XRP/USD pair turned down sharply from just above the 61.8% Fibonacci retracement level of $1.40. By the end of the week, the pair had plunged 14.58% to end at $1.11646.
The bulls purchased the drop to the 20-week exponential moving average (EMA), but they have not been able to build on it. This shows a lack of demand at higher levels. The bears will now sense an opportunity and try to pull the price below the 20-week EMA.
If they manage to do that, the selling could intensify, and the pair could decline to the 50-week simple moving average (SMA). Such a deep fall could delay the resumption of the upward move.
Conversely, if the price rebounds off the 20-week EMA, it will indicate that buyers continue to accumulate on dips. The bulls will then again try to push XRP’s price toward $1.95389. The gradually upsloping 20-week EMA and the relative strength index (RSI) just above the midpoint suggest a marginal advantage to bulls.
Ripple technical analysis: daily chart
XRP’s price has been trading between $1.34174 and $1.04 for the past few days. The buyers pushed and closed the price above the resistance of the range on 6 September, but the breakout proved to be a bull trap.
After the XRP/USD pair dipped back into the range on 7 September, the bears pulled the price down to the 50-day SMA. The buyers defended this support as seen from the long tail on the day’s Doji candlestick.
However, the bears have not allowed the price to be sustained above the 20-day EMA. The relative strength index (RSI) has dropped into the negative zone and the 20-day EMA has started to turn down, indicating the path of least resistance is to the downside.
If the price breaks and is sustained below $1, the selling could intensify further and the pair may drop to the next support at $0.75.
Alternatively, if the price rebounds off the current level and rises above $1.15, it will suggest that the range-bound action may continue for a few more days. The bulls will have to push to sustain the price above the $1.34174 to $1.41498 resistance zone to gain the upper hand.
How to trade Ripple this week
The Ripple price analysis shows that 20-day EMA is acting as a resistance, indicating that the bears have the upper hand. The pair could challenge the psychological support at $1 and the bearish momentum could pick up if this support cracks. A break and close above $1.15 will be the first sign of strength.
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.