II think ultimately Ripple could be a great “lottery ticket.”
Ripple has gone back and forth during the course of the trading session on Thursday as we continue to be bound by not only the SEC lawsuit in the United States, but also the fact that there is a general malaise when it comes to markets anyways. With this being said, the $0.60 level seems to be a bit of a magnet for price in the short term, so I will be watching to see whether or not we can hang around in this vicinity, or if we can move much more aggressively.
On a break above the highs of the trading session on Wednesday, that could open up the possibility of Ripple moving towards the $0.75 level, an area that has been support recently, so therefore it should offer a bit of technical resistance. If we can break above there, then it is possible that we could go looking towards the 50 day EMA after that. For that matter, you can also make an argument that we are also taking a look at the 50 day EMA crossing below the 200 day EMA, which is known as the “death cross.” Whether or not that actually happens to bring in more sellers is a completely different question, but at this point in time is likely that we are seeing a potential for a short-term bounce, but whether or not it can hang on is a completely different question due to the fact that we have seen such bearish pressure on anything remotely close to a risk asset.
Speaking of risk assets, you can make a strong argument for Ripple being one due to the fact that we still have that SEC lawsuit filed against it, which has kept Ripple on the fringes in America, and as soon as that is rectified, it will almost certainly be a situation where Ripple will explode to the upside. Because of this, I believe that this is a market that you can think of more as an investment than anything else. The $0.50 level underneath should be supportive, but quite frankly we need to see Bitcoin pick up a bit of momentum to lift some of these more dangerous markets go higher. Regardless, I have no interest in shorting Ripple, even if I had an easy way to do it. I think ultimately Ripple could be a great “lottery ticket.”