I do like the idea of looking for value and building a position over the longer term, as I think you have plenty of time to get involved in what could be an explosive rally before it is all said and done.
Ripple broke above the $0.75 level over the last couple of days, which suggests that perhaps we are ready to go higher based upon the fact that we have formed a nice “V bottom.” It is worth noting that the 50 day EMA has offered a little bit of resistance, so that causes a certain amount of trouble. Ultimately, I think this is a market that not only has to worry about that technical indicator, but also the 200 day EMA.
Beyond the technical concerns, it is worth noting that the market also has to worry about the lawsuit with the SEC in the United States, which is ongoing. However, we have recently seen some things that suggest that Ripple might have a decent argument to get out of that lawsuit, and that would almost certainly send this market straight through the roof as it would allow Ripple to be used by US banks.
If we can break above the $0.90 level, then it is likely that we will go looking towards the $1.00 level, an area that has been important multiple times in this market. Ripple respects these big figures like almost all other markets, so it would make a lot of sense that the $1.00 level would be difficult to get beyond. If we do break above that level, it would obviously be an extraordinarily bullish sign for the market and could send it looking towards the $1.10 level next.
I suspect that we are more likely than not going to see a little bit of pushback over the next couple of days, as Ripple continues to kill time heading towards that lawsuit decision. The markets have been extraordinarily volatile, and they will continue to be, although Ripple remains a little bit more muted than some of the other crypto markets. Having said that, as Bitcoin continues to rally, that could very well lift Ripple itself. After all, Bitcoin moves the entire market most of the time. The market continues to be one that will be moved by headlines, but also on overall risk appetite when it comes to crypto in general. I do like the idea of looking for value and building a position over the longer term, as I think you have plenty of time to get involved in what could be an explosive rally before it is all said and done.
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