Ripple price analysis 4 Oct: will the underperformance end?

Ripple is attracting strong buying at lower levels

Ripple cryptocurrency                                 
Ripple aims to take on the Ethereum network - Photo: Shutterstock

Ripple announced the formation of a $250m Creator Fund on 29 September to support brands, creators and marketplaces to identify new use cases for non-fungible tokens (NFTs) on the XRP ledger. With this move, Ripple aims to take on the Ethereum network, which is currently the preferred network for NFTs but is bogged down by slow transaction speed and high fees.

Ripple said in its blog post: “Ultimately, we believe NFTs embody the promise of tokenization and represent a tipping point for its embrace by the mainstream. Through the Creator Fund and the XRPL, we’re excited to unleash new utility for NFTs and accelerate the broader shift to tokenization.”  

Ripple’s development team announced the launch of an engineering preview of the Federated Sidechains on 30 September. The company had unveiled the vision for this upgrade back in June of this year. The sidechains open opportunities for developers to customize the chains for “specific use cases like tokenization, DeFi, or payments.”

Ripple’s chief executive, Brad Garlinghouse, said in an interview with Fox Business that the firm could consider settling its lawsuit with the US Securities and Exchange Commission only if “there’s absolute certainty about what XRP is on a go-forward basis.”

Could the fundamental developments in Ripple boost XRP’s price or will the uncertainty of the outcome of the lawsuit limit the upside? What do the charts suggest? Read the Ripple price analysis to find out.

 Ripple technical analysis: weekly chart

Ripple technical analysis weekly chart

XRP’s price dipped below the 20-week exponential moving average (EMA) for the second consecutive week but lower levels attracted buying. The XRP/USD pair turned around and rose 11.83% to close the week at $1.05443.

The moving averages are gradually sloping up and the relative strength index (RSI) is just above the midpoint, indicating a minor advantage to the bulls.

If the price sustains above the 20-week EMA, the pair could rise to $1.41498. This level may again act as a hurdle but if bulls can thrust the price above it, the next stop could be the overhead resistance zone at $1.75 to $1.95389.

This positive view will invalidate if the price turns down and breaks below the 20-week EMA. If that happens, XRP’s price could slide down to the 50-week simple moving average (SMA).

Ripple technical analysis: daily chart

Ripple technical analysis daily chart

XRP’s price soared above the 20-day EMA on 1 October, which was the first indication that bulls are making a comeback. However, the recovery is facing stiff resistance at the 50-day SMA, indicating that bears have not surrendered and are selling at higher levels.

The XRP/USD pair has been stuck between the moving averages for the past three days, suggesting indecision among bulls and bears. While bears are selling near the 50-day SMA, bulls are buying near the 20-day EMA.

If the price slips and sustains below the 20-day EMA, the pair could again gradually slide down to $0.88. 

Alternatively, if the price rises from the current level and breaks above the 50-day SMA, the bullish momentum could pick up. The pair could then start its northward march toward the overhead resistance zone at $1.34 to $1.42. 

 How to trade Ripple this week

The Ripple price analysis shows that bulls are attempting to push the price above the 50-day SMA. If they succeed, the pair could pick up momentum and rally toward $1.42. On the other hand, if the price slips back below the 20-day EMA, the pair may drop to $0.88.

 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
Low: 1.07906
High: 1.09912

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

Further reading: How to trade Ripple: the ultimate guide

Further reading:

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