The price of XRP fell 30% on December 29 after Coinbase’s decision to suspend trading.
Market sentiment around XRP has turned significantly negative due to the fear of further delistings from the exchange.
In the near term, XRP is facing three major historical support levels at $0.224, $0.1743 and $0.1471.
Where will the XRP price go next?
The ongoing price trend of XRP is not cyclical and is not based on technical analysis. This is due to investors selling XRP after trading on major cryptocurrency exchanges was suspended.
On December 29, Coinbase announced that it will suspend XRP trading pairs on its platform. Paul Grewal, Coinbase Chief Legal Officer, wrote:
“In light of the SEC’s lawsuit against Ripple Labs, Inc, we have taken the decision to suspend the XRP trading pairs on our platform. Trading will move to the limit starting December 28, 2020 at 2:30 PM PST, and will be suspended completely on Tuesday January 19, 2021. 10 a.m. PST*. We will provide additional updates, if any, through the Coinbase Support Twitter account, including if there are any timing changes.”
Due to the recent action by the SEC against Ripple, all XRP books have been moved to limit only and Coinbase plans to completely suspend trading in XRP on Tuesday, January 19, 2021, at 10 AM PT. After that, users will continue to retain access to their XRP funds. https://t.co/izreZvgHNl
– Coinbase (coinbase) December 28, 2020
As previously reported by Cointelegraph, analysts expected Coinbase to suspend XRP trading after the US Securities and Exchange Commission filed its complaint.
Coinbase plans to undergo an initial public offering, and it is in the company’s best interest to remain fully compliant with US regulators
Given the regulatory uncertainty surrounding XRP, traders emphasized that technical analysis is less important in the short term. Scott Melker, Cryptocurrency Dealer, He said:
“A few people have told me there is an oversold bullish divergence on the USD XRP chart. You’re doing it wrong. Charts don’t matter here. You can’t trade in a vacuum. Jesus could have come with Peggy and Tupac and have a Brad Garlinghouse concert and still I am. I won’t buy it.”
For the foreseeable future, XRP has several major areas of support from which it could recover. However, these are deep support levels on the weekly chart, indicating that they lack the momentum for a major rebound.
The price of XRP fell more than 60% in just two weeks, posting one of the steepest two-week declines in history.
what happened after that?
Adam Cochran, a partner at Cinneamhain Ventures, was one of the first to spread the story that Coinbase was in talks about suspending XRP trading.
Cochran hinted that the Securities and Exchange Commission may be looking at more projects and companies than people realize. he He said:
“If you thought my Coinbase scoop for the $XRP delisting/suspension was insightful, you’ll love the next scoop I’m working on, this week. It looks like the Saudi Electricity Company is a lot more active than we thought and is getting acquainted with a number of projects and companies!”