XRP price dropped 30% on December 29th after Coinbase decided to suspend trading.
The market sentiment surrounding XRP has become largely negative due to the fear of further stock exchange listings.
In the short term, XRP is facing three major historical support levels at $ 0.224, $ 0.1743, and $ 0.1471.
Where is the XRP price going next?
The ongoing price development of XRP is neither cyclical nor dependent on technical analysis. This is due to investors selling XRP after trading on major cryptocurrency exchanges ceased.
On December 29th, Coinbase announced that the XRP trading pairs on their platform will be suspended. Paul Grewal, the chief legal officer at Coinbase, wrote:
“In light of the SEC’s lawsuit against Ripple Labs, Inc, we have decided to suspend the XRP trading pairs on our platform. Trading won’t reach its limit until December 28, 2020 at 2:30 p.m. PST and will be fully suspended on Tuesday, January 19, 2021 at 10 a.m. Pacific Standard Time *. We may provide additional updates via the Coinbase support Twitter account, even if the timing changes. “
In light of the SEC’s recent actions against Ripple, all XRP books have been pushed to limit and Coinbase plans to completely suspend trading in XRP on Tuesday, January 19, 2021 at 10 a.m. PST. After that, users will still have access to their XRP funds. https://t.co/izreZvgHNl
– Coinbase (@coinbase) December 28, 2020
As Cointelegraph previously reported, analysts expected Coinbase to stop XRP trading after the US Securities and Exchange Commission filed their complaint.
Coinbase is planning an IPO. It is in the company’s interest to fully comply with US regulatory requirements.
Given the regulatory uncertainty surrounding XRP, traders have emphasized that technical analysis is of lesser importance in the short term. Scott Melker, a cryptocurrency trader, said:
“A couple of people have told me that there are oversold bullish divergences on the $ XRP chart. You’re doing this wrong. Diagrams do not play a role here. You cannot act in a vacuum. Jesus could come down with Biggie and Tupac and do a concert for Brad Garlinghouse and I still wouldn’t buy it. “
For the foreseeable future, XRP has several key areas of support that it could potentially recover from. However, these are low levels of support on the weekly chart, indicating that there is a lack of momentum for a bigger rebound.
XRP price is down over 60% in just two weeks, posting one of the steepest two-week declines in history.
What happens next?
Adam Cochran, partner at Cinneamhain Ventures, was one of the first to break the story that Coinbase was having talks about ending XRP trading.
Cochran suggested that the SEC is likely investigating more projects and companies than people think. He said:
“If you think my shovel is insightful about Coinbase’s delisting / suspension of $ XRP, you’ll love the next shovel I’m working on this week. It looks like the SEC is far more active than thought and sniffed a number of projects and companies! “