Ripple price analysis: Rally to $0.50 is possible if setup completes
Ripple could remain volatile in a range for a few days
Ripple’s XRP token has been stuck in a range because of the uncertainty regarding its ongoing lawsuit with the United States Securities and Exchange Commission (SEC). XRP has been in a correction for the past few days and the bulls are attempting to keep the price above the immediate support at $0.36 as of 10 August 2022.
There has not been much news on the lawsuit barring the update from defence lawyer James K. Filan, who tweeted on 9 August that “the SEC had filed a one-line response to Ripple defendants’ efforts to enforce Judge Netburn’s ruling on authentication of videos of SEC officials’ remarks.”
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There was another update on 10 August stating that the Ripple defendants had filed a response “to the SEC’s objections to Magistrate Judge Netburn’s decisions on the DPP issue and the attorney-client privilege issue.”
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Will XRP go up or could the range-bound action continue for a few more days? Read the XRP price analysis to find out what the charts suggest.
Ripple technical analysis: Weekly chart
XRP’s price has been struggling to achieve a meaningful bounce for the past several weeks. The bulls attempted to start a recovery but that fizzled out near $0.41, indicating that demand dries up at higher levels.
Both moving averages continue to slope down and the relative strength index (RSI) is in negative territory, indicating that bears are in control.
If the price turns down from the current level, the bears will attempt to pull the XRP/USD pair to $0.32 and then to the crucial support at $0.28. A break and close below this level will indicate the resumption of the downtrend.
Conversely, if XRP’s price turns up from the current level, the buyers will try to push the pair above $0.41 and challenge the overhead resistance zone between the 20-week exponential moving average (EMA) and $0.51. The bulls will have to clear this overhead hurdle to signal a potential trend change.
Ripple technical analysis: Daily chart
The bulls pushed XRP’s price above the overhead resistance at $0.39 on 30 July, but could not sustain the higher levels. The buyers defended the 20-day EMA and again attempted to push the price above the overhead resistance on 8 August, but failed.
That may have tempted the short-term traders to book profits, which activity has pulled the price back below the 20-day EMA. The XRP/USD pair could drop to the 50-day simple moving average (SMA) and then to the support line. A break and close below this support could indicate that bears are back in command.
On the contrary, if the price turns up from the current level and rises above the $0.39 to $0.41 overhead resistance zone, it will complete a bullish ascending triangle pattern. This bullish setup has a target objective of $0.50.
Ripple: Buy or sell at current levels?
Ripple has formed an ascending triangle pattern which will complete on a break and close above $0.39. That could open the doors for a possible rally to $0.50. Alternatively, Ripple’s price analysis suggests that a break and close below the support line will invalidate the bullish setup. That could result in a retest of the strong support zone between $0.29 and $0.32.
The views and opinions expressed in the article are those of the author and do not constitute trading advice. Trading and investing involve substantial risks and you should do your own research or contact your financial adviser before arriving at a decision.
