Ripple technical analysis 18 Oct: Is a fall below $1 likely?

Ripple may slide below $1.05 in the short term

Businessman pointing at Ripple (XRP) with modern business building and cityscape in the background                                 
Will the current Ripple level hold? – Photo: Shutterstock
                                

The continuing lawsuit between Ripple and the US Securities and Exchange Commission (SEC) may get further stretched.

The regulator has requested that the court extend the expert rebuttal report deadline to 12 November and the discovery deadline to 14 January.

According to CryptoLawUS, Ripple has opposed the extension of the deposition deadline. Ripple has even rejected the compromise deadline of 22 December proposed by the SEC.

Nevertheless, lawyer Jeremy Hogan is nevertheless optimistic about an end to the case being in sight, as FinanceFeeds reported

On the operational front, Ripple announced a $44m strategic environmental, social and governance (ESG) joint venture investment with the fintech provider Nelnet Renewable Energy to fund solar energy projects throughout the US. 

Ripple joined the Digital Pound Foundation as a founding member of the group to support the creation of a digitised UK pound. Susan Friedman, international policy counsel at Ripple, is expected to join the board. 

Michael Novogratz, founder and CEO of Galaxy Digital, tweeted on 17 October that XRP’s price has risen since the SEC lawsuit, showing the resilience of the crypto communities.

Could the extension of the lawsuit stall XRP’s recovery, prompting traders to book profits? What do the charts suggest? Read the Ripple price analysis to find out.

Ripple technical analysis: weekly chart

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

XRP’s price formed an inside-day candlestick pattern last week, indicating uncertainty among the bulls and the bears. The XRP/USD pair corrected 3.55% to end the week at $1.09334.

If bears pull the price below $1.06, the pair could drop to the 20-week exponential moving average (EMA). This is an important support to watch out for, because if this level cracks, the pair may drop to the 50-week simple moving average (SMA).

On the contrary, a breakout and close above $1.18 will indicate that the uncertainty has resolved in favour of buyers. XRP’s price could then rally to $1.41 where bears may mount a stiff resistance.

However, if bulls clear this obstacle, the rally could then extend to $1.75 and later to $1.95389. The marginally upsloping moving averages and the relative strength index (RSI) in the positive zone indicate a minor advantage to buyers.

Ripple technical analysis: daily chart

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

XRP’s price turned down from $1.22 on 10 October but rebounded off the 20-day EMA on 13 October. However, the rebound fizzled out at $1.18 on 16 October, suggesting that demand dries up at higher levels.

Both moving averages are flat and the RSI is near the centre, which does not give a clear advantage either to the bulls or the bears in the short term.

The bears are currently attempting to sink the price below the moving averages. If they succeed, the XRP/USD pair could drop to psychological support at $1. A break and close below this level could result in a decline to $0.88.

Alternatively, if the price rises from the current level, the bulls will again try to push and sustain the price above the downtrend line. Such a move will signal that the corrective phase could be over. The pair may then rise to $1.41 and later to $1.75.

How to trade Ripple this week

The Ripple price analysis shows that demand dries up at higher levels. If the bears sink the price below $1.05, the pair could challenge the psychological support at $1. 

The bulls will have to push and sustain the price above the downtrend line to signal strength.

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
0.7465
Low: 0.7029
High: 0.92386

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

Further reading: How to trade Ripple: the ultimate guide

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