We still await the SEC lawsuit decision before we see real traction.

Ripple tried to rally again on Monday but simply cannot get off of its back. This is not a huge surprise, because most of crypto looks rather anemic. Add to the fact that Ripple is dealing with an SEC lawsuit that seems like it’s never going to end, there’s no real reason to think that Ripple was suddenly going to rip to the upside. Quite frankly, it’s probably more likely that it does the exact opposite.

At this point, the $0.40 level looks to be a bit of a magnet for the price, but I believe that we are about to break down again, based on the technical pattern on the chart. The descending triangle measures for a move to $0.30, and I think that move could be rather quick. If we get some type of negative momentum in the crypto markets overall, that will be reason enough for Ripple to fall. While once thought of as a potentially strong project, Stellar Lumens can do the same thing without the SEC causing headaches.

That being said, it’s worth noting that the market is going to be highly sensitive to the rest of crypto, so if we do get some type of bullish run in other markets, that could translate into a short-term balance for Ripple. However, I would not get overly excited about any rally and would look at it with suspicion. In fact, I will probably find an offshore exchange to start shorting this market again, especially near the 50-day EMA.

Longer term, I think Ripple could be interesting. However, I believe you are probably going to get an opportunity to buy it at much lower levels, perhaps as low as $0.20 if you are patient enough. At that point, I might buy some and stick it in a wallet somewhere to simply forget about it. If it works out, great. If it does not, that’s okay as well, as it won’t be a major loss in the big scheme of things.

While Ripple does have a lot of traction in some parts of the world, not being able to use the US banking system is going to be a major weight around its neck, so we still await the SEC lawsuit decision before we see real traction.

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.

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.

If you are in a situation where you can use leverage or have the available funds, it could be a great market for you.

Ripple tried to rally during the trading session on Thursday but gave back the gains rather quickly to end up forming a bit of a shooting star. The shooting star sits just below the crucial $0.75 level, and even further below the 50 Day EMA. At this point, the market looks as if it will continue to go lower, especially as Ripple still is operating under the specter of the SEC lawsuit.

When you look at the chart, you can see that the Tuesday candlestick was very neutral, and if we can break down below that level it is likely that we would see the market drop significantly and perhaps even run as low as $0.60. Remember that Ripple is pretty far out on the risk spectrum as it cannot even be used in the United States yet. That being said, if we were to turn around and break out above the 0.75 level at, and perhaps even the 50 Day EMA, we could get a little bit of momentum to the upside.

Looking at this chart, it has obviously been bouncing around in a bit of a consolidation area, with the $0.90 level above being massive resistance, so a break above that level is probably going to continue to be important enough that if it were to be overcome, that might be the signal that Ripple is finally ready to take off for a bigger move. Quite frankly, the market is hanging about in a state of mediocrity as we wait for that lawsuit decision.

The attitude of the market will continue to be one of indecision, but for longer-term investors, Ripple offers the hope of being cleared for use in US banks, and that would be a massive return on investment. As things stand right now, it just has too many questions about its future to make it something that carries a lot of momentum.

Another way you can approach this market is to simply go back and forth, between $0.60 and $0.90, and use it as a trading vessel. A lot of this will come down to whether or not you have leverage available, or a large enough account to make it worth your while. If you are in a situation where you can use leverage or have the available funds, it could be a great market for you.