Ripple tried to rally during the trading session on Thursday but gave back the gains rather quickly to end up forming a bit of a shooting star. The shooting star sits just below the crucial $0.75 level, and even further below the 50 Day EMA. At this point, the market looks as if it will continue to go lower, especially as Ripple still is operating under the specter of the SEC lawsuit.
When you look at the chart, you can see that the Tuesday candlestick was very neutral, and if we can break down below that level it is likely that we would see the market drop significantly and perhaps even run as low as $0.60. Remember that Ripple is pretty far out on the risk spectrum as it cannot even be used in the United States yet. That being said, if we were to turn around and break out above the 0.75 level at, and perhaps even the 50 Day EMA, we could get a little bit of momentum to the upside.
Looking at this chart, it has obviously been bouncing around in a bit of a consolidation area, with the $0.90 level above being massive resistance, so a break above that level is probably going to continue to be important enough that if it were to be overcome, that might be the signal that Ripple is finally ready to take off for a bigger move. Quite frankly, the market is hanging about in a state of mediocrity as we wait for that lawsuit decision.
The attitude of the market will continue to be one of indecision, but for longer-term investors, Ripple offers the hope of being cleared for use in US banks, and that would be a massive return on investment. As things stand right now, it just has too many questions about its future to make it something that carries a lot of momentum.
Another way you can approach this market is to simply go back and forth, between $0.60 and $0.90, and use it as a trading vessel. A lot of this will come down to whether or not you have leverage available, or a large enough account to make it worth your while. If you are in a situation where you can use leverage or have the available funds, it could be a great market for you.
