- I'm covering Ripple today because it is at a potentially important spot.
- It's worth noting that crypto itself looks like it's just barely hanging on. For example, Bitcoin is struggling to get back above the $110,000 level. And that means we need to start looking in other places for potential opportunities, or maybe signs that there's a bigger problem.
- Granted, Bitcoin and Ripple are two different markets, but if Bitcoin doesn't do well, generally speaking, nobody else does.
So, this is why I find the price action in Ripple very interesting as we are testing the bottom of what I believe is a descending triangle, at least at the moment, with the $2.70 level being very important support over the last four months or so. So, with that being said, we ended up forming a fairly neutral candlestick by the time Labor Day session started. It is Labor Day in the United States. That's one thing to take away from here is that volume may have been somewhat anemic, but we've been drifting lower for a while.
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Golden Fib Zone
We are also hanging around in the so-called golden zone between the 50 % and 61.8 % Fibonacci retracement levels. So, I think we are queued up for a big move. I don’t know the direction yet, but this descending triangle is somewhat ominous. I think if we give up the $2.70 level, the next move will be to the 61.8 % Fibonacci retracement level, where perhaps we'll find support not only from that, but the 200 day EMA, that would put Ripple at roughly $2.55. If we rally from here, the 50 day EMA currently at the $2.92 level could be a bit of a barrier. And I think the $3 level would be as well. If we can recapture $3, then experiences tell me typically what happens is we continue much higher. We wipe out this potential negative technical pattern.
In that environment, I wouldn't be surprised to see it race towards the $3.60 level again. Keep in mind Ripple was a much smaller market than Bitcoin or some of the other assets you may trade in like the S &P 500. But with a little bit of size position awareness, you can take advantage of these moves. Ripple was on the precipice of doing something. It looks negative, but it hasn't confirmed it quite yet. Be on the lookout.
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