Ripple has continued to nosedive as does the rest of crypto and now looks very likely to reach the $0.20 level based upon previous support. At this point, crypto is dead money, as Ponzi schemes and fraud have run rampant. We have seen a lot of these schemes exposed in the last few weeks, and the money flowing out of crypto has been astonishing. In fact, two out of the $3 trillion worth of money that was in the crypto market is now gone.
At this point, I think it’s only a matter of time before we see rallies, but those rallies should be opportunities to short this market, and I will do so every time we see a significant amount of pushback. Ultimately, this is a market that given enough time will probably continue to grind it lower, and the $0.40 level should act as a bit of a barrier. Furthermore, the 50 Day EMA has sliced below the $0.50 level and is running much lower.
Ripple is also stuck with an SEC lawsuit that seems like it’s never going to end, so although ripple, unlike so many other crypto networks, has a real-life use case, it may never get to see it in the United States. Until that court case is cleared, it’s difficult to imagine a scenario where Ripple will get bullish. Having said that, if they do win the case it may be in a short-term buying opportunity, turning into a longer-term one if crypto can gather itself. However, with so much fraud and Ponzi schemes coming apart at the same time, the biggest problem is crypto has a major confidence issue. As long as there’s a confidence issue with crypto, the rest of it is not going to perform well, so there’s no reason to think that this market will do anything different.
Ripple probably doesn’t go to zero, only because there are some banks out there that use it. However, I think the $0.20 level is going to be crucial to defend, and if it cannot do so, then we will see Ripple drop below $0.10 before it bottoms. Quite frankly, that looks much more likely to happen then it did just a few weeks ago. The question now is what happens next with crypto? This looks a lot like technology stocks in 1999.
