The XRP price reached new monthly lows after Coinbase revealed it will remove the token in January.
The XRP price fell 30% on December 29 after Coinbase’s decision to suspend trading.
Market sentiment around XRP became extremely negative due to fear of more exchanges sliding the asset.
In the short term, the XRP faces three main levels of historical support at $0.224, $0.1743 and $0.1471.
Where does the XRP price go?
The current price trend of XRP is not cyclical and does not depend on technical analysis. It is due to investors who sell XRP after the suspension of trading in the main exchanges of cryptomoeda.
On December 29, Coinbase announced that it is suspending XRP trading pairs on its platform. Paul Grewal, Coinbase’s legal director, wrote:
„In light of the SEC lawsuit against Ripple Labs, Inc., we have made the decision to suspend XRP trading pairs on our platform. Trading will only enter the limit from December 28, 2020 at 2:30pm PST, and will be fully suspended on Tuesday, January 19, 2021 at 10am Pacific Standard Time*. We will provide additional updates, if any, via the Coinbase Support Twitter account, including if there are any changes in dates. ”
As Cointelegraph reported earlier, analysts predicted that Coinbase would suspend trading in XRP after the U.S. Securities and Exchange Commission filed its complaint.
Coinbase plans to submit to an initial public offering and it is in the company’s interest to remain in full compliance with US regulators.
Considering the regulatory uncertainty surrounding XRP, traders emphasized that technical analysis is less important in the short term. Scott Melker, a cryptomaniac trader, said:
„Some people have told me that there is divergence of the high oversell on the $XRP charts. They are using the wrong method. The charts don’t matter here. You can’t trade in a vacuum. Jesus could go down with Biggie and Tupac and give a show to Brad Garlinghouse and I still wouldn’t buy. ”
In the foreseeable future, XRP has several important support areas from which it could recover. However, these are deep support levels on the weekly chart, which shows that there is a lack of momentum for a major recovery.
The price of XRP fell more than 60% in just two weeks, registering one of the largest two-week drops in history.
What will happen next?
Adam Cochran, a partner at Cinneamhain Ventures, was one of the first to publicize the story that Coinbase had talks about suspending the XRP negotiation.
Cochran hinted that the SEC is probably investigating more projects and companies than people realize. He said:
„If you thought my scoop on Coinbase’s $XRP removal/suspension was enlightening, you’re going to love the next scoop I’m working on this week. It seems that the SEC is much more active than we thought and sniffs out a number of projects and companies! ”