Ripple got hit hard on Monday as we continue to see a lot of volatility and risk assets across the board. Keep in mind that crypto is of course far out on the risk spectrum, so we need to see more “risk-on behavior” overall in order for Ripple to turn things around. Ripple has been finding a bit of support near the $0.65 level, so it is possible we could have a little bit of a bounce from here. With that being said, it is probably worth noting that the market has had a couple of impulsive red candlesticks recently.
If we were to break down below the lows of the trading session on Monday, that could open up fresh selling, sending Ripple down to the $0.60 level. The $0.60 level has been significant support previously, so it does make sense that we would see that continue to offer a bit of interest from the buyers. Breaking down below the $0.60 level then opens up the possibility of a move to the $0.50 level.
The 50-day EMA above is at the $0.77 level and drifting lower. The $0.75 level underneath is an area could offer a little bit of resistance as well. If we can break above the 50-day EMA, then it is possible that Ripple could go looking towards the $0.90 level, but it would need to see crypto strength, in general, to get that type of movement happening. Furthermore, we have the never-ending SEC lawsuit that hangs over the head of Ripple, so you need to keep that in the back of your mind as well. The latest headlines have been a little bit more in favor of Ripple, but it has not been resolved completely yet.
I think more than anything else, Ripple will continue to be a back-and-forth trading environment. In other words, if you are a shorter-term trader this might be a nice opportunity. However, if you are more of an investor, then a dip like this could end up being a nice buying opportunity. After all, if the SEC lawsuit gets thrown out eventually, or even gets ruled in favor of Ripple, that could send this market screaming higher. Until then, I think you need to keep your expectations in check.
