XRP/USD Forecast: Ripple Hammered on Monday

I think more than anything else, Ripple will continue to be a back-and-forth trading environment.

Ripple got hit hard on Monday as we continue to see a lot of volatility and risk assets across the board. Keep in mind that crypto is of course far out on the risk spectrum, so we need to see more “risk-on behavior” overall in order for Ripple to turn things around. Ripple has been finding a bit of support near the $0.65 level, so it is possible we could have a little bit of a bounce from here. With that being said, it is probably worth noting that the market has had a couple of impulsive red candlesticks recently.

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If we were to break down below the lows of the trading session on Monday, that could open up fresh selling, sending Ripple down to the $0.60 level. The $0.60 level has been significant support previously, so it does make sense that we would see that continue to offer a bit of interest from the buyers. Breaking down below the $0.60 level then opens up the possibility of a move to the $0.50 level.

The 50-day EMA above is at the $0.77 level and drifting lower. The $0.75 level underneath is an area could offer a little bit of resistance as well. If we can break above the 50-day EMA, then it is possible that Ripple could go looking towards the $0.90 level, but it would need to see crypto strength, in general, to get that type of movement happening. Furthermore, we have the never-ending SEC lawsuit that hangs over the head of Ripple, so you need to keep that in the back of your mind as well. The latest headlines have been a little bit more in favor of Ripple, but it has not been resolved completely yet.

I think more than anything else, Ripple will continue to be a back-and-forth trading environment. In other words, if you are a shorter-term trader this might be a nice opportunity. However, if you are more of an investor, then a dip like this could end up being a nice buying opportunity. After all, if the SEC lawsuit gets thrown out eventually, or even gets ruled in favor of Ripple, that could send this market screaming higher. Until then, I think you need to keep your expectations in check.