Ripple technical analysis 11 Oct: is $1.41 in sight?

Ripple has turned positive in the short-term.

Bronze-coloured coin with raised Ripple symbol                                 
Ripple graphic – Image: Shutterstock

Ripple’s XRP token rallied last week on positive developments in its ongoing lawsuit with the US Securities and Exchange Commission (SEC). 

Judge Analisa Torres dismissed the XRP holders’ petition to intervene in the case, stating that such a move would “compel the SEC to take an enforcement action against them” and may also delay the case. However, Judge Torres allowed the XRP holders to participate as “amicus curiae” and offer necessary information relevant to the proceedings in the court.

In another likely win for Ripple, the payment giant discovered an email chain between the SEC and a third party which could show that the 2018 speech by ex-SEC director William Hinman asserting Ethereum is not a security was not his personal opinion but SEC’s policy. Judge Sarah Netburn has added the documents related to the SEC’s meetings with the law firms and the email chain for in-camera review.

Qatar National Bank (QNB) announced on 4 October that it had joined forces with Ripple “to improve cross-border payments and expand its remittance service across multiple countries in a quick succession”.

Could XRP’s price build up momentum and play catch-up with the other major cryptocurrencies or will it again stumble at higher levels? 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 once again bounced off the 20-week exponential moving average (EMA) last week, indicating that bulls continue to accumulate at lower levels. The XRP/USD pair rallied 7.51% last week to end at $1.13360.

Both moving averages are sloping up gradually and the Relative Strength Index (RSI) remains in the positive zone, indicating that bulls have the upper hand.

If buyers push the price above the downtrend line, the pair could rise to $1.41498, where the bears are likely to mount a stiff resistance. However, if bulls do not allow the price to dip back below the downtrend line, the possibility of a break above $1.41498 increases.

If that happens, the pair could rally to the overhead resistance zone at $1.75 to $1.95389. Contrary to this assumption, if XRP’s price turns down from the downtrend line, the bears will again try to pull the pair below the 20-week EMA.

Ripple technical analysis: daily chart

Ripple technical analysis: daily chart

The tight range trading between the moving averages resolved to the upside when bulls pushed XRP’s price above the 50-day simple moving average (SMA) on 9 October.

However, the long wick on the 10 October candlestick suggests that bears have not given up yet and may attempt to stall the recovery at the downtrend line.

The important level to watch on the downside is the 20-day EMA. If the price plummets below this support, it will suggest that supply exceeds demand. That could pull the XRP/USD pair to $1 and then to $0.92.

On the other hand, a breakout and close above the downtrend line could attract further buying and the bulls may challenge the resistance at $1.41498.

How to trade Ripple this week

The Ripple price analysis shows that bulls have overpowered the bears in the short term. The bullish momentum could pick up after buyers drive the price above the downtrend line. This positive view will invalidate if bears sink the pair below the 20-day EMA.

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: 1.1305
High: 1.15187

Further reading:

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