The price of XRP fell 30% on December 29th after Coinbase decided to stop trading.
The market sentiment surrounding XRP has become mostly negative for fear of suspensions on other exchanges.
In the short term, XRP faces three major levels of support at $ 0.224, $ 0.1743, and $ 0.1471.
Where would the price of XRP go next?
The current XRP price development is neither cyclical nor dependent on technical analyzes. This is due to investors selling XRP after the suspension of trading on major cryptocurrency exchanges.
On December 29th, Coinbase announced that XRP trading pairs will be suspended on its platform.. Paul Grewal, Coinbase’s Chief Legal Officer, wrote:
“In light of the SEC’s lawsuit against Ripple Labs, Inc., we have decided to suspend XRP trading pairs on our platform. Trading will only be capped starting December 28, 2020 at 2:30 p.m. PST and will be completely suspended on Tuesday, January 19, 2021 at 10 a.m. Pacific time. We may provide additional updates via the Coinbase support Twitter account, even if the schedule changes. “
Given the recent SEC action against Ripple, all XRP books have been pushed to limit and Coinbase plans to completely suspend XRP trading 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 assumed that Coinbase would cease XRP trading after the SEC filed its complaint.
Coinbase is planning an initial public offering (IPO) and it is in the company’s best interest to continue to fully comply with regulatory requirements in the US..
Given the regulatory uncertainty surrounding XRP, Traders have emphasized that technical analysis is less important in the short term. Scott Melker, a cryptocurrency trader, said::
“Some people have told me that there is an oversold bullish divergence on the XRP chart. You’re doing it wrong. Graphics don’t play a role here. You cannot act in a vacuum. Jesus could come with Biggie and Tupac and do a concert for Brad Garlinghouse and still not buy. “
In the near future, XRP has several key areas of support from which it could recover.. However, these are the deep support levels on the weekly chart. This shows that there is a lack of momentum for a big jump.
The price of XRP has fallen more than 60% in just two weeksand recorded one of the largest two-week falls in history.
What happens next
Adam Cochran, a partner of Cinneamhain Ventures, was one of the first to tell the story that Coinbase had spoken about the suspension of XRP trading.
Cochran indicated that The SEC is probably looking for more projects and companies than people think. He said::
“If you thought my shovel about Coinbase delisting and XRP suspension was insightful, you’ll love the next shovel I’m working on this week. It seems the SEC is way more active than we thought, snooping around various projects and companies! “