Ripple price analysis 20 Dec: is a rally to $1 possible this year?

Ripple may stage a strong recovery

A stylised ripple token                                 
The campaign group Empower Oversight Whistleblowers & Research (EMPOWR) has filed a lawsuit against the SEC – Photo: Shutterstock
                                

In the latest twist in the continuing lawsuit involving Ripple and the US Securities and Exchange Commission (SEC), the government accountability campaign group Empower Oversight Whistleblowers & Research (EMPOWR) has filed a lawsuit against the SEC.

The suit seeks to compel the regulator “to comply with several Freedom of Information Act requests regarding potential conflicts of interest by former high-level officials”, Jay Clayton, William Hinman, Marc Berger, “and their regulation of cryptocurrencies”.

Crypto lawyer John Deaton said in a Tweet on 17 December that the speech by the SEC’s former director of the division of corporation finance, William Hinman, debating whether bitcoin and ether were securities or not, may be in violation of regulations if it was only his personal opinion.

The uncertainty regarding the lawsuit does not seem to be bothering the XRP whales. The on-chain analytics firm Santiment tweeted on 11 December that addresses owning between 1 million and 10 million XRP hold XRP coins worth $3.31bn. The smart money whale millionaires have added 19 million coins in the past three months.

Could the accumulation by the bulls result in a recovery and will XRP go up? Read the XRP price analysis to find out what the charts suggest.

Ripple technical analysis: weekly chart

Ripple technical analysis: weekly chart
Ripple technical analysis: weekly chart – Credit: Currency.com

The bulls are struggling to sustain XRP’s price above the 50-week simple moving average (SMA). This indicates that the level, which had been acting as support, has now flipped into resistance. The XRP/USD pair corrected marginally by 0.60% to end at $0.83.

The 20-week exponential moving average (EMA) has turned down and the relative strength index (RSI) is in the negative territory, indicating that bears have the upper hand. The pair could drop to the support line of the symmetrical triangle.

This level is likely to attract buyers who will then try to push and sustain the price above the 20-week EMA. If they succeed, the pair could rally to the resistance line of the triangle.

A break and close above the triangle will signal that the uncertainty has resolved in favour of the bulls. That could clear the path for a possible rally to $1.95.

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Alternatively, a break and close below the triangle could intensify selling and pull XRP’s price to the strong support at $0.16.

Ripple technical analysis: daily chart

Ripple technical analysis: daily chart
Ripple technical analysis: daily chart – Credit: Currency.com

Although XRP’s price had been trading below the 20-day EMA for the past few days, the bears could not build on this advantage and sustain the XRP/USD pair below $0.75. This suggests accumulation at lower levels.

The RSI has risen sharply from oversold levels and the 20-day EMA is flattening out, suggesting the bears may be losing their grip. The buyers pushed the price above the 20-day EMA but the long wick on the candlestick suggests that bears are selling at higher levels.

However, if bulls do not give up much ground, the prospects of a break and close above the 20-day EMA improves. The pair could then rally to the 50-day SMA. A break and close below this level could clear the path for a possible rally to $1.25.

Conversely, if the price turns down from the current level and breaks below $0.75, the pair could drop to $0.65.

Ripple: Buy or sell at current levels?

Ripple’s price analysis suggests that bulls are attempting a comeback. A break and close above the 20-day EMA could result in a rally to the 50-day SMA. The key support to watch on the downside is $0.75. A break below this level could result in a decline to the strong support zone at $0.65 to $0.62.

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.

Ripple to US Dollar
Daily change
0.38748
Low: 0.38703
High: 0.41027

Further reading

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