The Ripple market initially tried to rally on Monday, but as you can see, we have simply turned around to sell off yet again. The biggest problem with Ripple at the moment is that we are still waiting around to see how the court cases go. If they can finally get access to the US markets on a large scale, Ripple will probably be one of the best plays out there. However, as we are essentially in a “wait-and-see” scenario right now, it does limit the gains a bit.
The $0.75 level has been an area that traders have paid close attention to. It should not be a huge surprise that we have ended up there again. This is a market that does not have a whole lot to propel it one way or the other, but it does “piggyback” on the top of other crypto markets. If Bitcoin takes off, Ripple gets a little bit of a boost as a result. However, it is worth noting that during the day we failed at the 200 day EMA. Because of this, a lot of technical traders will look at this as a sign of weakness.
Ultimately, it does look like things are starting to lean in favor of Ripple when it comes to the court case, but we do not know the outcome. If we can take out the 200 day EMA to the upside, I believe that Ripple should continue to go higher, perhaps reaching towards the $1.00 level. That would obviously attract a lot of attention, and therefore a significant amount of profit-taking would more likely than not be the case. However, if we turn around and break down below the $0.75 level again, I would not be surprised at all to see Ripple revisit the $0.65 level rather quickly. It is worth noting that as things stand right now, this is essentially an inverted hammer candlestick, so a breakout of this range should attract a lot of technical trading in and of itself. It should also be noted that the US dollar has been all over the place, and that has a significant effect on what happens here as well. Remember, you are not just trading Ripple, you're trading the US dollar as well.
