Ripple price analysis (21-27 June): is drop to $0.56 likely?
Analysis shows the XRP coin may drop to $0.56 as bears cement their position.
According to a post by lawyer Jeremy Hogan, the US Securities and Exchange Commission (SEC) lawsuit against Ripple Labs is unlikely to reach a settlement until the pre-trial discovery phase concludes. If the case is not settled, Hogan expects the case to be decided by the judge at the “summary judgement” stage – and Hogan doesn’t expect that to be until “early 2022, maybe January”.
Although the court case has held back XRP’s price, it does not seem to have affected Ripple’s operations. The payments provider released a white paper, Big Opportunity in Small Business Payments, where it argued small and medium-sized enterprises (SMEs) could greatly benefit by utilising blockchain technology for cross-border payments systems. According to The Daily Hodl, this is potentially a $10trn-$15trn market.
In other news, Ripple’s chief technology officer David Schwartz said in an interview with YouTube channel Thinking Crypto that Amazon may be planning to utilise the federated side chains of the XRP Ledger.
According to RippleCoinNews.com, Schwartz said: “Amazon could definitely... you know, they certainly have the infrastructure to make this happen. What we need to do is to create software that’s clean and organised enough... then I think it could be very competitive.”
With a lawsuit settlement possibly months away, can XRP’s price still stage a comeback? Read the ripple price analysis to find out.
Ripple technical analysis: Weekly chart
After staying above the 20-week exponential moving average (EMA) for two weeks, the bears managed to break the support last week. XRP’s price declined 12.30% last week to close at $0.77035 on Sunday 20 June.
The XRP/USD pair may now drop to the 50-week simple moving average (SMA). The 20-week EMA has started to slope down and the relative strength index (RSI) has slipped below the 50 level, suggesting that the bears are in control.
However, the buyers may attempt to arrest the decline at the 50-week SMA or the 200-week SMA. A strong rebound off this support could push the price to the 20-week EMA. The bulls may have to thrust the price above the 20-week EMA and the overhead resistance at $1.09434 to indicate that the correction is over.
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Conversely, if the sellers sink the price below the 200-week SMA, XRP’s price may witness panic selling and could drop to $0.24.
Ripple technical analysis: Daily chart
XRP’s price has broken below the $0.75 support and the 200-day SMA today. If bears sustain the breakdown, the bearish descending triangle pattern will complete. This could result in panic selling, dragging the price down to $0.56.
The downsloping moving averages and the RSI near the overbought territory indicate the path of least resistance is to the downside.
Contrary to this assumption, if the bulls buy aggressively and push the price back above $0.75, it may indicate accumulation at lower levels. If the bulls can propel the price above the downtrend line of the triangle, the XRP/USD pair could turn positive in the short term and may rally to the 50-day SMA and later to $1.26121.
How to trade ripple this week
The breakdown from the descending triangle pattern indicates that bears have the upper hand. Traders may want to give careful consideration to their strategies, which might include avoiding buying in a falling market because supports are easily broken on the way down.
Bearing that in mind, traders may wish to remain on the sidelines until the ripple price analysis shows that the correction has ended and a bottom has formed.
Whatever you decide, it is worth bearing in mind that 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.