Ripple price analysis 1 Nov: range-bound action may continue
Ripple could remain range-bound in the short term
Ripple released its third quarter XRP Markets Report on 29 October, which showed a huge growth of its On-Demand Liquidity (ODL) service. The company sold $491.74 million of Ripple, net of purchases, more than three times $157.92 million in the previous quarter.
The cross-border remittance company said that transaction volume, in dollars, over RippleNet has more than doubled compared to last year. The ODL transactions in Q3 2021 grew roughly 130% compared to the previous quarter and accounted for about 25% of the total volume.
Ripple announced a tie-up with Pyypl, the international blockchain-based financial services technology company in the Middle East and Africa, to launch the first-ever ODL service in the Middle East.
Brooks Entwistle, managing director of RippleNet in APAC and MENA, said: “MENA continues to be a critical region for Ripple thanks to our outstanding roster of customers, a welcoming regulatory environment and a regional focus on the needed improvements in the current financial system.”
Could XRP go up on the back of improving fundamentals or will it continue to be bogged down due to the uncertainty of its lawsuit with the United States Securities and Exchange Commission? Read the XRP price analysis to find out what the charts suggest.
Ripple technical analysis: weekly chart
XRP’s price dipped below the 20-week exponential moving average (EMA) last week but the bears could not sustain the lower levels. This suggests that bulls are accumulating on dips. The XRP/USD pair rallied 2.90% to end the week at $1.11168.
The pair continues to be squeezed between the 20-week EMA and the downtrend line. Generally, such tight range trading results in a trending move but it is difficult to predict the direction of the breakout.
A break and close above the downtrend line will indicate that the correction may be over. XRP’s price could first rise to $1.41 and if bulls clear this hurdle, the up-move could reach $1.75 and then $1.95.
Contrary to this assumption, if the price breaks and sustains below the 20-week EMA, the next stop could be the 50-week simple moving average.
Ripple technical analysis: daily chart
XRP’s price plunged and closed below the strong support at $1.05 on 27 October completing the bearish descending triangle pattern. However, the bears could not build upon the advantage and maintain the selling pressure.
The XRP/USD pair staged a recovery on 28 October and bulls pushed the price back into the triangle on 29 October. The bulls propelled the price above the resistance line of the triangle on 30 October but the long wick on the day’s candlestick suggests selling at higher levels.
Both moving averages are flat and the relative strength index (RSI) is near the midpoint, indicating a balance between supply and demand. A break and close above $1.22 could tilt the advantage in favour of the bulls and open the doors for a rally to $1.41.
On the other hand, a break below $0.94 could intensify selling and pull the pair down to the strong support at $0.85. A break and close below this level could signal the start of a new downtrend.
Ripple buy or sell at current levels
Ripple’s price analysis shows that bulls are buying on dips and bears are selling on rallies. This could keep the pair range-bound for a few more days. The key level to watch on the upside is $1.24 and on the downside is $0.94. The pair could start a trending move if either level is breached.
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.