Ripple continues to underwhelm
Ripple has been an underachiever in the crypto markets lately, as we still are trying to find some type of momentum for the upside. That being said, there is also the argument that perhaps the crypto is “cheap”, but at this point it’s obvious that it has not enjoyed the type of popularity that Bitcoin has recently. With that in mind, I take a look at the charts and make a few observations.
Massive support level
One thing that I can point out here is that there has been a massive amount of support between the $0.25 level in the $0.30 level. We are at that level again, so it’s very likely that we would continue to see at least some type of industrial if not structural support in this area. The question now is whether or not we can hold this area? One thing that is for sure, we are certainly struggling to pick up momentum at this point.
Ripple has high hopes
One of the big drivers of Ripple has been the fact that it was supposed to make international settlements dirt cheap, as well as currency exchange rather easy. While it does work, and certainly it shows a lot of promise, the biggest problem is that many of the large banks around the world are starting their own projects. Because of this, it’ll be interesting to see whether not Ripple can compete, or if the rest of the world will simply walk by it. At this point, it is simply a trading instrument and not much more than that. Yes, there have been times where we have seen significant moves to the upside, lately Ripple has fallen short of any of the crypto hype.
It’s do or die
At this point, it’s do or die for Ripple. If we were to break down from here and below the psychologically important $0.30 level, we will then go looking towards the $0.25 level. At this point, it should be the “floor” in the marketplace. If it does not hold up, it’s very likely that this market will collapse and then go to who knows where next. Simply put, Ripple needs to find a bottom in this general vicinity, or risk ruin.
The trade going forward
The trade going forward is relatively simple at this point, as if you believe that Ripple is going to survive, you should be looking to scale into a larger position between the $0.25 level underneath, and the $0.30 level which currently offer support. To the upside, we could rally to the 47 level without too much effort, assuming some type of positivity comes back into the crypto markets. Above there, then I think there’s much more significant resistance at the $0.50 level.
Let’s be clear here: if you are looking to buy Ripple, you should probably think of it more or less as a “flyer.” This means that it may pay out quite nicely, but you probably are going to have to wait for some time. I would not put too much of my investment portfolio in Ripple, but at these extraordinarily low prices it may be worth a look.
Other related news
Bitcoin continues to look strong
by Kate Leaman | 19 August 2019
Ethereum on the precipice
by Kate Leaman | 16 August 2019
Bitcoin showing resiliency
by Kate Leaman | 15 August 2019