XRP: Ripple Price Gains 2% But Bearish Bias Remains
Ripple price (XRPUSD) is up by almost 2% today as part of a global rally in key assets. The price is trading at $0.2434, which is a few points above the intraday low of $0.2365. Other digital currencies are mixed, with Bitcoin rising by 1.80% as Ethereum falls by 1.45%.
Ripple, like most assets, did not have a good September as its price dropped by more than 4%. That made it its worst month since July this year.
While several factors led to the weakness in Ripple, the main reason was the stronger dollar. The US dollar index rose by more than 2% in September, making it its best month since March this year. Since Ripple is mostly traded in dollars, it tends to have an inverse relationship with the currency.
In October, several things will move the US dollar. For example, the dollar could continue to gain if the White House and congress fail to reach an agreement on stimulus. At the same time, a continued outbreak of the virus in other countries could push the dollar higher and Ripple price lower.
Separately, Ripple has become the first blockchain company to commit to taking its carbon footprint to zero in the next 10 years. In a statement yesterday, the firm said:
“Ripple is taking the lead to ensure fintech is part of the effort to build a sustainable future that is not only transformative for banks and consumers, but also beneficial for the planet.”
Ripple technical outlook
The daily chart below shows that Ripple price formed a double top pattern at $0.3254 in August. Since then, the currency has been in a downward trend, and in September, it reached a low of $0.2195. That was the lowest it has been since July 27.
The price decline is being supported by the 25-day exponential moving average. The price is also slightly below the descending trendline that is shown in green. Therefore, it will remain in a bearish trend so long as it is below this line.