Ripple price analysis 29 Nov: could the rebound sustain?

Ripple’s recovery may face selling near the 20-day EMA

A representation of a ripple token                                 
Brad Garlinghouse of Ripple Labs says the firm’s lawsuit with the SEC is making good progress – Photo: Shutterstock
                                

The chief executive of Ripple Labs, Brad Garlinghouse, has told CNBC that the firm’s lawsuit with the US Securities and Exchange Commission was making good progress, though the judicial process was slow. He said he expects the case to reach a conclusion next year.

Garlinghouse said: “Clearly we’re seeing good questions asked by the judge. And I think the judge realises this is not just about Ripple, this will have broader implications.” 

The continuing court case in the US does not seem to have affected Ripple’s operations in the rest of the world. Garlinghouse tweeted on 24 November that the fintech company could “hire a few hundred people next year” to fuel growth.

Ripple recently announced a partnership with the Micronesian nation of Palau to develop “strategies for cross-border payments and a USD-backed digital currency for Palau”. This could be the world’s first government-backed stablecoin.  

Could XRP go up, backed by strong operational performance and hopes of a conclusion to its lawsuit? Read the XRP price analysis to find out what the charts suggest.

Ripple technical analysis: weekly chart

Ripple technical analysis: weekly chart
Ripple technical analysis: weekly chart – Credit: Currency.com

XRP’s price continued its downward journey, and plummeted below the 20-week exponential moving average (EMA) last week. However, a minor positive is that the bulls bought the dip near the 50-week simple moving average (SMA), as seen from the long tail on the week’s candlestick.

The XRP/USD pair finished the week at $0.96, down 8.41% over the previous week’s closing price. The 20-week EMA has flattened out and the relative strength index (RSI) is near the midpoint, indicating a balance between supply and demand.

If bulls push the price back above the 20-week EMA, the pair could rally to the downtrend line. The bears are likely to defend this level with vigour. A break and close above this resistance could signal the start of a new uptrend.

Conversely, if XRP’s price turns down from the current level or the overhead resistance and breaks below the 50-week SMA, the selling could intensify. The pair could then drop to the 100-week SMA.

Ripple technical analysis: daily chart

Ripple technical analysis: daily chart
Ripple technical analysis: daily chart – Credit: Currency.com

XRP’s price broke below the support line of the symmetrical triangle pattern on 26 November, suggesting that the indecision among the bulls and the bears had resolved to the downside. The XRP/USD pair rebounded off the strong support zone of $0.88 to $0.85 on 28 November, indicating that bears are attempting to defend this zone.

The downsloping moving averages and the RSI in the negative zone suggest the bears are in command. If the price turns down from the 20-day EMA, the bears will attempt to pull the price below the support zone. If they manage to do that, the pair could start a downward move to the next critical level at $0.69.

On the other hand, if the price rises and closes inside the triangle, it will indicate strong buying at lower levels. A break and close above the moving averages will be the first sign the downtrend could be over.

Ripple: Buy or sell at current levels?

Ripple’s price analysis suggests the bulls are attempting a relief rally but they are likely to face stiff resistance at the 20-day EMA. If the price turns down from this level, the possibility of a drop below the strong support at $0.85 increases. The bulls will have to push the pair above the moving averages to indicate that the sellers may be losing their grip.

Before investing in any asset, always do your own research or contact your financial adviser before arriving at a decision. Remember that your decision should be based on your attitude to risk, your expertise in this market, the spread of your portfolio and how comfortable you feel about losing money. Never invest more than you can afford to lose and keep in mind that past performance is no guarantee of future returns.

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.

Ripple to US Dollar
Daily change
0.76337
Low: 0.75564
High: 0.77649

Further reading

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.
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