Ripple fell slightly during the trading session on Thursday, reaching towards the 0.25 handle. Ripple continues to be very noisy, but having said that I think there’s plenty of support underneath, and I think that the market should continue to find buyers as we drop, and I believe that the 0.24 level should be a bit of a “floor.” Ripple has utility as well, because it is a widely used ecosystem that banks already have adopted, so I like the idea of going long this market for the longer-term move. Ultimately, this market should then go to the 0.28 level, and then eventually to the 0.30 level which of course is the next large, round, psychologically significant number. The market has been bullish for some time, but recently we have seen a bit of stagnation. This is typical though, because it allows the market to build up the momentum necessary to reach towards higher levels.
Building a large position
I believe in building a large position, and with the relative cheapness of Ripple, it’s easy to do. I like the idea of picking up bits and pieces as we go long, and then hanging on for the longer-term move. Ultimately, Ripple will end up being one of my biggest positions as the crypto currency sector tends to move in the same direction. Ripple I believe has a long-term use, beyond speculation unlike many other crypto currencies. Because of this, the market should continue to see plenty of investment, and this of course has attracted a lot of attention from hedge funds and other institutional investors. I believe that Ripple will continue to reach towards the 0.50 level over the next several months, and if Bitcoin explodes to the upside, that should have a bit of a knock-on effect over here as well, as the speculators will help the institutional investors.