Over ten cryptocurrency companies ditched XRP support; the token may re-test April's barrier of $0.17
- Cryptocurrency companies try to distance themselves from Ripple.
- XRP needs to return above daily EMA200 to avoid catastrophe.
The number of cryptocurrency trading platforms and investment companies ditching XRP is growing. Since the US Securities and Exchange Commission filed a lawsuit against Ripple, the startup behind XRP, over ten companies either delisted XRP or suspended trading and other operations with the token.
The cryptocurrency asset manager 21Shares sold off its XRP holdings and excluded the asset from its ETP products, The Block writes, citing the CEO of the company, Hany Rashwan.
The risk on both sides is high, especially with a number of large over-the-counter (OTC) trading desks exiting the XRP market, specifically Jump Trading and Galaxy Digital, Rashwan said in the interview with the media outlet.
Notably, 21Shares has not published an official announcement so far.
B2C2 halted XRP trading with US customers on Saturday, December 26. The company, which is one of the largest market-making companies in the cryptocurrency industry, also noted that it might take further actions regarding trading in XRP products.
Thus, by the time of writing, the following companies introduced limitations for XRP trading or suspended support for the digital asset:
- Bitstamp;
- Simplex;
- Galaxy Digital;
- Jump Trading;
- Coinmama;
- OSL;
- Beaxy Exchange;
- CrossTower;
- Bitwise;
- B2C2;
- 21Shares.
Currently, Bitstamp is the only large cryptocurrency exchange that officially withdrew XRP support due to the SEC's lawsuit. Cinneamhain Ventures partner Adam Cochran hinted that Coinbase was considering delisting XRP. However, the information has not been officially confirmed yet.
XRP is on the verge of the abyss
XRP crashed to $0.21 following the SEC's decision. By the time of writing, the token has partially regained ground to trade at $0.29. However, despite the recovery, it is still nearly 50% down on a weekly basis.
From the technical point of view, XRP stays below the daily EMA200, which is an ominous sign for the coin. This technical line served as formidable support since June 23; thus, if the price fails to return above this area, the sell-off may start gaining traction with the next focus on the recent low of $0.21 and $0.17. This area limited XRP decline earlier this year.
XRP, daily chart
On the upside, a sustainable move above $0.33-$0.34 will mitigate the immediate bearish pressure and allow for an extended recovery towards $0.45.
Author
Tanya Abrosimova
Independent Analyst
