Ripple price analysis 8 Nov: Is a rally to $1.41 likely?

Ripple could rise to $1.41 in the short term

Golden ripple coin                                 
Ripple’s price analysis shows that bulls are attempting to solidify their advantage - Photo: Shutterstock
                                

Ripple’s XRP token has underperformed the crypto bull run in 2021 due to the uncertainty of the outcome of its lawsuit with the United States Securities and Exchange Commission. 

However, the company has remained active on the operational front and has ventured into areas popular with the crypto community such as non-fungible tokens (NFTs). 

In a recent interview with Cointelegraph, Ripple's chief technology officer David Schwartz, while speaking about the firm’s recent foray into NFTs, said: “We were a little late to the party, but not too late. If NFTs are successful, then we are all still early.”

Another positive news for the Ripple community is that Wrapped, the provider of cross-chain wrapped assets, announced that Wrapped XRP (wXRP), a digital asset backed 1:1 by XRP, placed in the custody with Hex Trust, will be launched in December. Schwartz said in a tweet that wXRP will be “multichain”. 

Could XRP go up and play catch up with the major coins or will it continue to underperform? Read the XRP price analysis to find out what the charts suggest.

Ripple technical analysis: weekly chart

Ripple technical analysis: weekly chart

XRP’s price rallied 9.64% last week to end at $1.218888. In doing so, the XRP/USD pair broke above the downtrend line, signaling that the bears may be losing their grip.

The rising moving averages and the relative strength index (RSI) in the positive territory indicate that bulls have the upper hand. If buyers sustain XRP’s price above the downtrend line, the pair could rally to $1.41.

This level may again act as a stiff resistance but if bulls thrust the price above it, the pair could accelerate to $1.75 and then challenge the major hurdle at $1.95.

Contrary to this assumption, if the price turns down from the current level and drops below the downtrend line, it will suggest that demand dries up at higher levels. 

The bears will then attempt to sink the price below the 20-week exponential moving average (EMA). If they succeed, the pair could drop to the 50-week simple moving average (SMA).

Ripple technical analysis: daily chart

Ripple technical analysis: daily chart

XRP’s price broke and closed above the resistance line of the symmetrical triangle on 2 November. This indicated that the indecision among the bulls and the bears resolved in favour of the buyers.

The bears tried to pull the price back inside the triangle but the bulls successfully defended the breakout level on 6 November, as seen from the long tail on the candlestick.

Buying resumed on 7 November and the bulls are attempting to push the price to the overhead resistance at $1.41. The 20-day EMA has started to turn up and the RSI is close to the overbought territory, indicating advantage to bulls.

If buyers drive the price above $1.41, the XRP/USD pair could rally to the pattern target at $1.68. This positive view will be invalidated if the price turns down and plummets below the 50-day SMA.

Ripple buy or sell at current levels

Ripple’s price analysis shows that bulls are attempting to solidify their advantage and push the pair to $1.41. The bullish momentum could pick up if buyers clear this overhead hurdle. Alternatively, the bears will gain the upper hand if the pair drops and sustains below the 50-day SMA.

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.

Trade Ripple to US Dollar – XRP/USD chart

Ripple to US Dollar
Daily change
0.90858
Low: 0.89712
High: 0.9443

Further reading

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