Ripple price analysis 3 Jan: could $0.74 hold?

Ripple may drop to $0.74 in the short-term

Ripple coin                                 
Ripple coin – Photo: Shutterstock
                                

Ripple’s XRP token ended 2021 with a gain of over 250%, suggesting that investors continue to hold their positions, regardless of the lawsuit between Ripple and the US Securities and Exchange Commission (SEC).

Crypto analyst and influencer Lark Davis said in a recent YouTube video that he hopes Ripple will win its lawsuit against the SEC. He equated the behaviour of the SEC to that of a “schoolyard bully” and said Ripple’s win will “set a major precedent” and put the SEC in its place.

Arcane Research sounded a warning in its recent report where it said that XRP and Cardano will not find a place in the list of top 10 cryptocurrencies by market capitalisation in 2022.

Will XRP go up in the first few weeks of 2022? Read the XRP price analysis to find out what the charts suggest.

Ripple technical analysis: weekly chart

Ripple Weekly Chart
Ripple Weekly Chart. Source: Currency.com

XRP’s price turned down from the 20-week exponential moving average (EMA) last week and the bears pulled the price below the 50-week simple moving average (SMA). The XRP/USD pair fell 6.71% to end the week at $0.85.

The moving averages are on the verge of a bearish crossover and the relative strength index (RSI) is in the negative zone, indicating that bears have the upper hand.

The pair could now drop to the support line of the symmetrical triangle. If the price rebounds off this level, the bulls will make one more attempt to push the pair above the 20-week EMA and the psychological resistance at $1. If they succeed, the pair could rally to the resistance line of the triangle.

Alternatively, if bears sink and sustain XRP’s price below the triangle, it will suggest that supply exceeds demand. That could intensify the selling and the pair could drop to $0.51 and then to $0.36.

Ripple technical analysis: daily chart

Ripple Daily Chart
Ripple Daily Chart. Source: Currency.com

XRP’s price dropped below the 20-day EMA on 28 December, suggesting that bears are trying to gain the upper hand. The relief rally reached the 20-day EMA on 2 January but the bulls have failed to clear the hurdle.

This suggests that the sentiment remains negative and traders continue to sell on rallies to the moving averages. The bears could now try to pull the price to the strong support at $0.74.

A sharp rebound off this level will suggest that bulls are accumulating on dips. The XRP/USD pair could then extend its stay inside the range between $0.74 and $1.02 for a few more days.

A break and close above $1.02 will be the first indication that bulls are back in the game. On the contrary, if the price breaks below $0.74, the selling could pick up momentum and the pair could slide to the 4 December intraday low at $0.62. 

Ripple: buy or sell at current levels?

Ripple’s price analysis suggests that bears are selling on rallies and they will attempt to pull the price below the strong support at $0.74. If they succeed, the downtrend could resume. Conversely, a break and close above the moving averages could push the pair toward $1.02.

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
0.75131
Low: 0.73468
High: 0.75131

Further Reading: What is XRP? Your simple guide to Ripple’s cryptocurrency

Further Reading: Ripple vs Bitcoin: Which one’s better?

The material provided on this website is for information purposes only and should not be regarded as investment research or investment advice. Any opinion that may be provided on this page is a subjective point of view of the author and does not constitute a recommendation by Currency Com Bel LLC or its partners. We do not make any endorsements or warranty on the accuracy or completeness of the information that is provided on this page. By relying on the information on this page, you acknowledge that you are acting knowingly and independently and that you accept all the risks involved.
iPhone Image
Trade the world’s top tokenised stocks, indices, commodities and currencies with the help of crypto or fiat
iMac Image
Trade the world’s top tokenised stocks, indices, commodities and currencies with the help of crypto or fiat
iMac Image