XRP/USD Forecast: Ripple Pulls Back to Reach $0.75

Ripple has fallen a bit during the trading session on Thursday to show signs of exhaustion. The 50 day EMA is sitting right at the top of the range for the session, so this shows that we certainly do not have enough momentum to continue going higher in the short term. The fact that we have broken down towards the $0.75 level does suggest that we are going lower, perhaps down to the $0.70 level next.

Keep in mind that Ripple is a little bit different than other cryptocurrencies, in the sense that it is currently involved in a lawsuit with the Security Exchange Commission in the United States. While the project itself is an excellent one, a way for banks to do cross-border transactions, the reality is that Ripple desperately needs the United States to participate, as it is the worlds largest banking sector. Once we get through that lawsuit, it could open up the possibility for Ripple to skyrocket.

Looking at the size of the candle, it does not suggest that there is any major panic out there, but just that the buyers simply have stepped aside. With this in mind, I just do not have any interest in trying to pick up Ripple in the short term, but I might be a little bit more interested once we get closer to the $0.65 level. The $0.65 level has seen a bit of action recently, as we formed a nice-looking hammer from that level.

If we were to break down below there, then the next major area of support I see is the $0.60 level. At that point, we had seen a lot of volume come back into the markets will be interesting to see whether or not it can hold. If it does not, then we could go towards the psychologically important $0.50 handle.

On the upside, if we were to break above the $0.80 level then it is possible, we could go looking towards the 200 day EMA which is sitting just underneath the $0.85 level. The $0.90 level after that has been resistance, and I think would be difficult to overcome in the short term.

The one thing that you can probably say about Ripple, or cryptocurrencies in general at the moment, is that you probably have plenty of time to get involved. I would not be too quick to build a big position.