• Coinbase announced that support for Ripple and a few other cryptocurrencies would be removed due to low usage.
  • Ripple is up by 5.2% over the last 48 hours, looking to reclaim its immediate support at $0.4092.
  • If FTX-induced contagion creates bearishness in the market, XRP price could test $0.3497, losing which will invalidate the bullish thesis.

Coinbase’s decision to halt the support came from the lack of demand, which is a step up for the crypto market. This is because every negative development in the last few weeks in space has been caused by FTX’s collapse. However, the crypto exchange’s downfall is still a danger for XRP price, more so than the Coinbase wallet stopping support for the asset.

Coinbase heeds to its users

Coinbase, in an announcement on November 29, stated that its wallet would no longer support Ripple (XRP), Bitcoin Cash (BCH), Ethereum Classic (ETC) and Stellar (XLM). The decision from the second biggest crypto exchange in the world came after Coinbase found that the usage of these assets was low.

Consequently, as of January 2023, the aforementioned tokens’ support will be terminated on the platform. However, the exchange reassured that no asset would be lost and that users would be able to recover them via their recovery phases.

Of the assets set to lose support, Ripple emerged as the more surprising asset as it did not seem to be in demand despite being in the headlines. The cryptocurrency is already embroiled in a lawsuit with the Securities and Exchange Commission (SEC), which Ripple also blames for FTX’s downfall.

The General Counsel of Ripple, Stuart Alderoty, tweeted that BlockFi’s filing for Chapter 11 bankruptcy was SEC’s doing. Earlier this year, the crypto lender was fined $100 million for its failure to register its retail crypto lending product. Alderoty framed this as,

XRP price on a rise

XRP price could be seen hovering at $0.3959 after registering a 5.2% rise over the last two days. The cryptocurrency is on the way to reclaiming an important support level, but for XRP to do the same, it will have to gain more buying pressure.

This would push the price of the asset toward $0.4092, which stands as the immediate resistance for XRP price. The Relative Strength Index (RSI) indicates an increase in buyers’ presence, which is necessary for flipping $0.4092 into support. This will allow XRP price to kickstart a rally to tag $0.4359, provided it can breach the resistance at $0.4208.

XRP/USDT 4-hour chart

XRP/USDT 4-hour chart

However, if the fear of crypto market contagion caused by FTX’s collapse takes precedence, XRP price could decline. This will lead to the altcoin testing its immediate support at $0.3769. 

Losing this level will result in XRP price trickling toward $0.3497, which acts as critical support. A daily candlestick close below this price level will invalidate the bullish thesis, bringing the altcoin to $0.3310 and resulting in a 16% crash.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Cardano Price Prediction: The market bottom no one wants to call

Cardano Price Prediction: The market bottom no one wants to call

Cardano price continues to make gains in the crypto market, as the smart contract has risen 70% since January 1, reaching a new uptrend high at $0.4138. Despite the skeptical market sentiment for risk assets, Cardano’s Price action remains unfazed.

More Cardano News

Algorand Price Prediction: Bulls aiming for a 25% spike

Algorand Price Prediction: Bulls aiming for a 25% spike

Algorand price is showing an applaudable amount of strength to start the month of February. The scalable blockchain token could rally an additional 25% if market conditions are met.

More Algorand News

Crypto.com Price Prediction: CRO at a crossroads

Crypto.com Price Prediction: CRO at a crossroads

Crypto.com price has been trading within a 10% range for nearly two weeks. The $0.08 barrier has consistently acted as resistance, and the mid-$0.07 has acted as support. The coiling range has yet to make a decision on which way it will resolve.

More Crypto.com News

Terra Classic Price Analysis: Ray Dalio’s outright negativity on crypto existence is bad PR for LUNC

Terra Classic Price Analysis: Ray Dalio’s outright negativity on crypto existence is bad PR for LUNC

Terra Classic (LUNC) could only book roughly a 1.4% gain on the back of the Federal Reserve meeting from late Wednesday, which triggered upswings in all risk asset classes. The biggest winner of the evening was EUR/USD, as it traded over 1% higher and broke 1.10 to the upside.

More Terra Classic News

Bitcoin: If bulls are back, this is where you can accumulate BTC next

Bitcoin: If bulls are back, this is where you can accumulate BTC next

Bitcoin price shows a lack of momentum after an explosive move in the last three weeks. The fourth week has been relatively silent, without a lot of volatile moves. While BTC consolidates, other altcoins are rallying left and right, providing massive gains.

Read full analysis

BTC

ETH

XRP