The market looks as if it is trying to form a larger bottoming pattern, but we have a long way to go before Ripple takes off.
Ripple pulled back ever so slightly on Friday as we continue to walk along the 200-day EMA. The indicator is obviously very important for longer-term traders, so it is worth paying attention to the fact that Ripple has not been able to decisively clear this area recently. That does not mean that it cannot do it, but obviously, there is a bit of a fight on hand.
Looking underneath, the 50-day EMA sits at the $0.7836 level and is starting to curl higher at this point. This would be supportive, as so many traders pay close attention to that indicator as well. In fact, the fact that the market is currently between both the 50-day EMA and the 200-day EMA indicators suggests that we are squeezing. When the price gets squeezed between these indicators, it quite often leads to a bigger move, something that Ripple desperately needs.
It is also worth noting that some of the bigger markets in the crypto world are starting to rally a bit, so that may have a bit of an effect on this market as well. Unfortunately for Ripple, the SEC lawsuit drags on but it does seem as if it is starting to turn the way of the company. Ultimately, if we get good news out of the lawsuit, Ripple should continue to go higher. Keep an eye on the $0.90 level, as it was previously resistance, so if we can break above there is likely that we would go looking towards the $1.00 level.
On the other hand, if we were to break down, it is likely that the market could break below the 50-day EMA. If we break down below there, the $0.75 level could be an area of support, but ultimately the market needs to find enough buyers to come in and pick this asset up. The market looks as if it is trying to form a larger bottoming pattern, but we have a long way to go before Ripple takes off. Nonetheless, I do not have any interest in shorting this market. I think that given enough time we will see a certain amount of value hunting going forward, which is something that a lot of crypto markets are showing.
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