Ripple price analysis (23–29 August): is a rally to $2 likely?
XRP could pick up momentum to rise above $1.30
The XRP community is keeping close tabs on the progress of the court case between the US Securities and Exchange Commission (SEC) and Ripple, with the two most keenly anticipated dates being 31 August and 15 October.
Both parties will submit their initial arguments and evidence on 31 August, which may give investors an insight into who is likely to gain the upper hand in the lawsuit. This could initiate volatile trading in XRP. The next important date is 15 October, which is the deadline for conducting expert discovery.
However, the SEC does not believe the case will be resolved quickly. Its lawyer, Jorge G Tenreiro, recently wrote a letter to the judge in the case, saying: “In sum, there is no realistic prospect that the parties will fully resolve this case for several months, if not longer.”
Will the uncertainty of the outcome of the lawsuit be a drag on XRP’s price going forward or will the bullish momentum push prices higher? Read the Ripple price analysis to find out.
Ripple technical analysis: weekly chart
XRP’s price witnessed profit-booking last week and slipped to an intra-week low of $1.04687. However, the long tail on the week’s candlestick shows strong buying at lower levels. The XRP/USD pair recovered towards the end of the week at $1.22105, a loss of 4.46% over the previous week’s close.
The inside-week candlestick pattern shows indecision among the bulls and the bears. If this uncertainty resolves to the upside and the bulls push the price above $1.34174, the next stop could be $1.75 and then $2.
The rising 20-week exponential moving average (EMA) and the relative strength index (RSI) in the positive territory indicate the path of least resistance is to the upside.
This bullish view will be invalidated if the bears pull XRP’s price below $1.04. Such a move could result in a decline to the 20-week EMA. If the price rebounds off this support, the buyers will make one more attempt to resume the uptrend. Alternatively, a break below the 20-week EMA could open the doors for a further slide to the 50-week simple moving average (SMA).
Ripple technical analysis: daily chart
The bears pulled XRP’s price below the $1.09 support on 17 and 18 August but they could not sustain the lower levels. This suggests that the sentiment remains positive and traders are viewing the dips as a buying opportunities.
The bears again pressed down from the $1.26 resistance line on 20 August but the bulls did not give up much ground. This shows that traders are not booking profits near the resistance as they anticipate the up-move to continue.
If bulls push and close the price above $1.30, the XRP/USD pair will complete a cup-and-handle formation. This setup has a pattern target of $2. The upsloping moving averages and the RSI near the overbought zone suggest an advantage to buyers.
If, on the contrary, the price turns down from the current level, the pair may drop to the 20-day EMA. A strong rebound off this support will suggest that sentiment remains positive and the bulls will again try to resume the uptrend.
But a break below the 20-day EMA and the $1.04 support will suggest that the bullish momentum has weakened. That could pull the price down to the 50-day SMA.
How to trade Ripple this week
Ripple price analysis shows that the bulls are attempting to complete a cup-and-handle pattern. If they manage to do that by pushing the price above $1.30, the pair could start its northward march toward the pattern target of $2. The bears would then have to sink the price below $1.04 to gain the upper hand.
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 and you should never invest more than you can afford to lose.