Ripple rallied rather significantly on Tuesday to slice through the 200-day EMA quite easily. In fact, we went as high as $0.91 before pulling back. That is the rub, though: we pulled back quite drastically to form a massive shooting star. Furthermore, Bitcoin has pulled back in the same general attitude, meaning that it is likely to see selling pressure. The market had gotten ahead of itself for a while, as the market is more than likely going to continue to see a little bit of a pullback in order to at least find some type of equilibrium.
The $0.75 level could be a potential target on a pullback, but I do not necessarily think that it is an important level, but it is an area that has been supportive in the past. Whether or not we can turn things around, this is going to come down to risk appetite more than anything else. After all, we have seen a lot of noisy behavior, and I think it is going to be worth paying close attention to the idea of whether or not the markets feel comfortable. Keep in mind that Ripple also has to worry about the SEC investigation, but the move that we had seen in the market during the last couple of days has more to do with Bitcoin and other crypto markets rallying. That being said, it makes Ripple especially vulnerable to any type of negative move.
If we were to somehow turn around and break above the highs of the trading session, then it is possible that we could see Ripple go looking towards the $1.00 level. Obviously, that would be an excellent gain over the last couple of days, but that is probably asking for too much. A move like that would attract a lot of attention, but you can see clearly how the $1.00 level has been important in the past. It now looks as if we may be getting ready to continue falling and not come anywhere near there due to the fact that we are trying to continue right at the 200 day EMA to roll over. The only thing that I think you can count on is a lot of volatility. I still think we are likely to see selling.
