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XRP Keeps Crashing Violently, How Low Can It Go?

source-logo  cryptovibes.com 29 December 2020 09:09, UTC

The XRP price dropped to new monthly lows after the Coinbase exchange said that it will delist the token in January. On December 29, the crypto lost another 30% after that Coinbase trading suspension.

Currently, the market sentiment around XRP has become overly negative as a result of the fear of more exchanges delisting the coin. In the short term, XRP faces three critical historical support levels at $0.224, $0.1743, and $0.1471. At the moment, it has breached the $0.224 level since it is trading around $0.201.

Where Will XRP Go Next?

The current price trend of XRP is not in any way cyclical nor is it reliant on technical analysis. It is as a result of the investors selling XRP after the suspension of trading across several major crypto exchanges.

On December 29, 2020, Coinbase confirmed that it will suspend all XRP trading pairs on their platform. The chief legal officer at Coinbase, Paul Grewal, published:

“In light of the SEC’s lawsuit against Ripple Labs, Inc, we have decided to suspend the XRP trading pairs on our platform. Trading will move into limit only starting December 28, 2020, at 2:30 PM PST, and will be fully suspended on Tuesday, January 19, 2021, at 10 a.m. Pacific Standard Time*. We will provide additional updates, if any, through the Coinbase Support Twitter account, including if there are any changes to timing.”

Given the SEC’s recent action against Ripple, all XRP books have been moved to limit only and Coinbase plans to fully suspend trading in XRP on Tuesday, January 19, 2021, at 10 AM PST. Afterwards, users will continue to retain access to their XRP funds. https://t.co/izreZvgHNl

— Coinbase (@coinbase) December 28, 2020

Based on previous reports, analysts and investors expected that Coinbase will suspend XRP trading after the US Securities and Exchange Commission (SEC) filed its complaint. Coinbase is scheduled to undergo an initial public offering (IPO) and it is in the company’s best interest to remain entirely compliant with all the regulators in the United States.

Since regulatory uncertainty has formed around XRP, traders now insist that technical analysis is of less importance in the near term. One crypto trader, Scott Melker, said:

“A few people have told me that there’s oversold bullish divergence on the $XRP chart. You are doing it wrong. Charts don’t matter here. You cannot trade in a vacuum. Jesus could come down with Biggie and Tupac and put on a concert for Brad Garlinghouse and I still wouldn’t buy.”

In the near and middle term, XRP has a few major support zones that could help it rebound. Nonetheless, these are deep support zones on the weekly charts, which indicates that it lacks the needed momentum for a major rebound.
XRP/USD weekly candle price chart (Coinbase). Source: TradingView.com

The price of XRP has crashed by at least 60% in less than two weeks which records one of the sharpest two-week drops in its history..

What Comes Next?

A partner at Cinneamhain Ventures, Adam Cochran, was among the first individuals to break the news that Coinbase had serious conversations about suspending XRP trading services on its platform.

Cochran highlighted that the SEC is possibly looking into more projects and firms than people realize. He stated:

“If you thought my scoop on Coinbase delisting/suspending $XRP was insightful, you’re going to love the next scoop I’m working on, this week. Looks like that SEC is far more active than we thought and sniffing around a number of projects and companies!”

When will the XRP downfall stop? Time will tell.

cryptovibes.com