Ripple price analysis 17 Jan: Get ready for a bounce?
Ripple may extend its relief rally as the bulls defend aggressively
Ripple’s lawsuit with the US Securities and Exchange Commission (SEC) could extend to August or September of this year before it sees a closure, attorney Jeremy Hogan said in a recent video.
Hogan had previously forecast that the court case would end by April or May but the extension of the discovery deadline by a month due to the rapid spread of the Omicron variant of the coronavirus has altered the expected completion date. After the deadline ends, there will be a five-month briefing schedule and only by the end of July will the judge even “get the case to make a decision,” Hogan said.
In a minor victory for Ripple, Judge Sarah Netburn in New York ruled that the SEC must surrender documents, including the email with a draft of former director William Hinman’s speech, and notes of meetings between SEC officials and third parties.
Ripple’s general counsel Stu Alderoty said: “We’re pleased with the court’s order, which grants Ripple access to important documents that the SEC was withholding. We will continue to aggressively defend this case and we remain optimistic that resolution of this case will provide much needed clarity to the industry,” Coindesk reported.
Will XRP go up after the minor victory over the SEC? Read the XRP price analysis to find out what the charts suggest.
Ripple technical analysis: weekly chart
XRP’s price bounced off the support line of the symmetrical triangle last week, indicating that the bulls are defending this level aggressively. The XRP/USD pair rose 3.33% to finish the week at $0.77.
The moving averages have completed a bearish crossover and the relative strength index (RSI) continues to trade in the negative zone, indicating that the path of least resistance is to the downside.
If the price turns down from the current level or the overhead resistance and plummets below the triangle, it will suggest the start of a deeper correction to $0.36.
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This negative view will be invalidated if the XRP’s price continues to move up and breaks above the 20-week exponential moving average (EMA). That could clear the path for a possible rally to the resistance line of the triangle.
Ripple technical analysis: daily chart
XRP’s price plunged below the $0.74 support on 10 January but the long tail on the day’s candlestick suggests strong buying at lower levels. This started a rebound, which reached the 20-day EMA on 12 January.
The bears are defending this level aggressively but a minor positive is that the buyers have not given up much ground. This indicates that short-term traders are not dumping their positions.
If the bulls drive the price above the 20-day EMA, the XRP/USD pair could rise to the 50-day simple moving average (SMA). This level may again act as a strong hurdle but if crossed, the upward move could reach $1.02.
However, the downsloping moving averages and the RSI in negative territory indicate a slight advantage to the bears. If the price turns down from the current level and sustains below $0.73, the pair could slide to the 4 December intraday low of $0.62.
Ripple: buy or sell at current levels?
Ripple’s price analysis suggests that bulls are attempting to push the pair above the 20-day EMA. If they succeed, the short-term trend could tilt in favour of the buyers and the pair could rally to $0.86. This positive view will be invalidated on a break and close below $0.73.
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.