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Ripple Price Prediction: XRP Trends Horizontally Above $0.27

Last Updated January 28th 2021

Daily Ripple XRP Technical Analysis

  • Ripple price has faced repeated rejections at the 20-day SMA.
  • XRP has dropped below the 20-bar and 50-bar SMAs in the 4-hour chart.

Following a drop from $0.296 to $0.267 on January 21, the Ripple price has been trending horizontally above $0.27. While XRP continues to sludge on with low volatility, let’s take a closer look with technical analysis.

 

Ripple Price Is Currently Going Through Low Volatility

After flipping the 20-day SMA from support to resistance this January 21, it has become a very formidable resistance barrier. As you can see, Ripple price has found repeated rejections over the last four days. 

xrp/usd  daily chart 012621

Image: XRP/USD daily 

This Tuesday, the Ripple price reached an intraday high of $0.30, crossed above the 20-day SMA, but it eventually retracted. The Bollinger Band in the daily chart tells us that the XRP price is going through a period of low volatility as it goes through a consolidation period.

xrp/usd bollinger band chart 012621

Image: XRP/USD daily

The 4-hour chart adds further credence to our bearish outlook. The latest candlestick has dropped XRP below the 50-bar and 20-bar SMAs, which is a very negative sign. 

xrp/usd 4-hour chart 012621

Image: XRP/USD 4-hour

However, the MACD shows sustained bullish momentum, and the 20-bar SMA is about to cross over the 50-bar SMA to form a bullish cross pattern. This could essentially mean that the buyers and sellers are going to keep cancelling each other out.

 

Arca Co-Founder Thinks That XRP Is Done

According to a Wall Street Journal report, the co-founder of crypto asset management firm Arca, Phil Liu, recently said that XRP would become “a remnant of history” by the end of 2021. Arca doesn’t offer exposure to XRP. 

The US Securities and Exchange Commission (SEC) filed a lawsuit against Ripple in December. The lawsuit accuses Ripple and its two executives - CEO Brad Garlinghouse and ex-chairman Chris Larsen - of selling XRP tokens as unregistered securities.

Liu, a securities lawyer, said that he finds the allegations presented “compelling.” He explained that XRP is Ripple’s only revenue stream and described its products as “inadequate.” Liu predicted that Ripple could ultimately become insolvent by the end of 2021 since the company has no alternative to XRP sales, which is currently at the center of the SEC lawsuit. 

I don't see a viable alternative to replace XRP sales except to move out of the US and exclude US investors from buying XRP. They would have to start from scratch, because all XRP profits would be disgorged since they all occurred when Ripple was a US-based company.

On the other hand, however, Ripple’s lawyer Andrew Ceresney said that XRP doesn’t fit the Howey test that is used to determine whether or not a particular digital asset is a security offering. 

 

Ripple Price Is Expected To Reach These Levels

With the buyers and sellers nullifying each other, we can expect XRP to keep trending horizontally above $0.27.

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