Ripple did very little on Tuesday as we continue to look for some type of catalyst to get moving. The $0.75 level has been an important level multiple times, and the fact that the 50-day EMA sits just above there has a certain amount of interest attached to it. Ultimately, the Ripple market will continue to look for some type of directionality, not only from the larger crypto markets but the SEC lawsuit against the company.
That lawsuit should wrap up sometime this summer, so do not be surprised at all to see that fundamental influence come into the market in a few months. In the short term, people are simply waiting for some type of reason to start buying Ripple, but as long as the rest of the crypto markets continue to slump the way they have, Ripple is going to be difficult to get overly bullish about.
This is not to say that you cannot build up a position, just that you need to understand that if you are involved in Ripple, you are more likely than not going to be investing, not trading. The 50-day EMA sits at the $0.77 level and is slumping to the downside, so I do think at this point in time we probably will see more downward pressure. If you are a short-term trader, you will be looking to fade rallies as they occur.
On the downside, the 0.70 level is an area that should offer short-term support, and if we break down below there it is likely that we could go looking towards the $0.60 level. The market has been in a downtrend for several months, and I think that will continue to be the case in the short term. Whether or not we are near the floor in the market still remains to be seen, so this is why I suspect that Ripple is more or less a market in which you need to be thinking about accumulating, not necessarily trying to profit from short-term moves. The $0.50 level underneath is a prime candidate for support from a longer-term standpoint, so if we break down below there it is obvious that Ripple would more likely than not unwind to catastrophic levels below with a swift manner to it.
