XRP/USD Forecast: Ripple Forming Descending Triangle

Christopher Lewis

We still await the SEC lawsuit decision before we see real traction.

Ripple tried to rally again on Monday but simply cannot get off of its back. This is not a huge surprise, because most of crypto looks rather anemic. Add to the fact that Ripple is dealing with an SEC lawsuit that seems like it’s never going to end, there’s no real reason to think that Ripple was suddenly going to rip to the upside. Quite frankly, it’s probably more likely that it does the exact opposite.

At this point, the $0.40 level looks to be a bit of a magnet for the price, but I believe that we are about to break down again, based on the technical pattern on the chart. The descending triangle measures for a move to $0.30, and I think that move could be rather quick. If we get some type of negative momentum in the crypto markets overall, that will be reason enough for Ripple to fall. While once thought of as a potentially strong project, Stellar Lumens can do the same thing without the SEC causing headaches.

That being said, it’s worth noting that the market is going to be highly sensitive to the rest of crypto, so if we do get some type of bullish run in other markets, that could translate into a short-term balance for Ripple. However, I would not get overly excited about any rally and would look at it with suspicion. In fact, I will probably find an offshore exchange to start shorting this market again, especially near the 50-day EMA.

Longer term, I think Ripple could be interesting. However, I believe you are probably going to get an opportunity to buy it at much lower levels, perhaps as low as $0.20 if you are patient enough. At that point, I might buy some and stick it in a wallet somewhere to simply forget about it. If it works out, great. If it does not, that’s okay as well, as it won’t be a major loss in the big scheme of things.

While Ripple does have a lot of traction in some parts of the world, not being able to use the US banking system is going to be a major weight around its neck, so we still await the SEC lawsuit decision before we see real traction.

XRP/USD

Christopher Lewis

Christopher Lewis has been trading Forex for several years. He writes about Forex for many online publications, including his own site, aptly named The Trader Guy.

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