It’s been a bad holiday period for XRP, which ironically is the worst-performing large altcoin in the market, down more than 70% since the 2020 highs were reached at the end of November 2020. Massive dumping had been triggered once the SEC announced Ripple Labs is charged with unregistered securities offerings, but the string of bad news did not end.
As we’ve seen in our last article, crypto activity had been elevated during the Christmas holiday and valuations more impulsively on thin volumes. While most of the other tokens benefited, XRP was at the other side of the spectrum and now we have a hefty list of exchanges that have delisted the token from their offering, mainly due to the regulatory backlash faced by Ripple.
Blockchain.com the last in line
Coinbase, Binance.US, OKCoin, and others had announced XRP delisting plans since the end of December. Blockchain.com, a popular wallet provider and crypto trading platform follows on the same path after in made an official announcement on January 4th:
Blockchain.com will halt XRP trading beginning Thursday, January 14th at 11:59 GMT. For all customers who have XRP balances, you will continue to have access to your XRP to send after we halt trading, but we will no longer support receiving more XRP in the Exchange.
The lawsuit against Ripple, CEO Brad Garlinghouse, and co-founder Christian Larsen for alleged violations of securities law, is not expected to end soon, yet that will be the only thing to matter for a price rebound.
Poor Prospects for XRP
In terms of price action development, XRP is in a bad position, even though it trades near oversold territory. Buyers continue to be reluctant and that communicates the current consolidation structure might be followed by more selling. The low reached on December 29th around 17.2 cents had not been retested yet and any break below it could open more downside towards the key support around 12 cents.
Blockchain.com did not announce a date for a potential resumption of XRP support, which means more news could be provided as the lawsuit progresses. Prospects are much better for Bitcoin and Ether, XRP rivals, that are trending higher and look to be poised for more gains. Now 4th by market cap, below USDT, XRP has a lot of upside potential, but its mother company will need to find a positive resolution for the current regulatory hurdles.