Ripple (XRP) falling 60% as major exchanges stop trading it
The price of the XRP fell to lows of $0.22, more than 60% lower since the U.S. SEC opened a lawsuit against Ripple, and now the major exchanges announce the suspension of their trading
The XRP value may fall to a minimum of $0.20 soon if the bears keep pushing down.
Before the U.S. regulator, the Securities and Exchanges Commission (SEC), filed a lawsuit, XRP had seen its value more than double during the 2020 bullish cycle. The price of 4th place cryptomoeda rose to $0.79 on November 24, with bulls targeting $1.00.
The SEC process, however, saw the value of the digital asset plummet 13% on December 22 and over 41% the next day.
XRP/USD daily price chart. Source: TradingView
On the daily chart, the division below 100-SMA continues to limit the bullish action, with the moving average located near $0.35. The struggle with resistance at this level, along with the bearish outlook for MACD and RSI, suggests that the path of least resistance could be down.
The XRP/USD currency pair has fallen about 20% in the last 24 hours after Bitstamp and Coinbase announced their plans to suspend trading. Overall, the XRP fell almost 60% last week.
XRP faces a number of obstacles, as shown by the Fib retracement levels of the recent decline from a maximum of $0.60 to a minimum of $0.20. The 23.6% ($0.30), 100-SMA ($0.35) and 50% ($0.40) Fiber Shrink Levels provide immediate levels of seller interest.
XRP/USD time graph. Source: TradingView
On the hourly chart, the price of the XRP is below the simple moving average of 100 hours, which further strengthens the short term bearish perspective. While $0.22 provides strong support, the continued rejection around $0.23 is further weakening the bulls. The hourly MACD is decreasing while the RSI remains within oversold territory.
If bears can establish a balance around $0.20, the next stop will probably be the $0.15-$0.10 zone. According to HornHairs cryptomorphic analyst, the XRP may fall to $0.009 if it reaches the March minimum.
XRP/USD chart showing a potential decline to $0.009. Source: CryptoHornHairs on Twitter
At the time of writing, the XRP/USD currency pair is trading around $0.22 and the downward spiral may continue if prices fall.
The bearish scenario will be cemented if investors discard the token following plans from major trading platforms such as Coinbase, Bitstamp, OKCoin and Crypto.com to suspend XRP trading.