Ripple has pulled back a bit during the trading session on Thursday to test the crucial 50 Day EMA. By doing so, the market has fallen toward the $0.80 level. This is an area that is minor support, but the presence of the 50 Day EMA will almost certainly cause a little bit of support to come into the picture, but I find even more supportive action near the $0.75 level.
By pulling back the way we have, it suggests that we are in the midst of perhaps trying to make a “double top” in this market, which would make a certain amount of sense considering that Ripple has the specter of the SEC lawsuit hanging above its head. It is also worth noting that the 200 Day EMA has been found right in the middle of the candlestick, so this does suggest that we will see a lot of noisy behavior.
To the upside, the $0.90 level is an area that has offered quite a bit of resistance, so if we were to break above there it would obviously be a very bullish sign. At that point, the market will almost certainly go looking towards the $1.00 level, an area that has been important more than once. Breaking the $1.00 level would be a major event in this market, and it would have a huge psychological effect on the markets in general. Because of this, the market will continue to be very choppy and noisy, as we are trying to build up the necessary momentum to make a move in one direction or the other.
The only thing I think you can count on in the Ripple market is going to be a lot of volatile and noisy behavior. However, if you are more longer-term incline, it looks as if the SEC lawsuit is starting to lose some of its things, and of course, we have a lot of bullish momentum in the crypto markets. That bullish momentum could push this market higher over the longer term, but it is truly going to come down to the lawsuit more than anything else at this point. As things stand at the moment, it does not look as if we have the momentum to break out to the upside, so I suspect that you still have plenty of opportunities to buy on some type of dip.
