Another exchange is abandoning XRP
Kraken has become the latest crypto exchange to drop XRP. Joining the ranks of Crypto.com, Coinbase, and OKCoin. The decision was prompted by a lawsuit filed in December by the US Securities and Exchange Commission (SEC), against XRP custodian Ripple, it’s CEO Brad Garlinghouse and President Chris Larsen.
If you don't know whats going on with XRP the basics are that the lawsuit is over the classification of XRP as a security (i.e. a financial asset from the investor intends to profit) as opposed to a currency or medium of exchange. The SEC claims the sale of XRP amounted to a violation of federal securities law, because Ripple failed to properly classify its product and, by extension, provide sufficient information to investors. source
The Kraken news was posted to their blog citing the recent SEC filing against Ripple Labs Inc., as their reason for halting XRP trading for U.S. residents no later than January 29, 2021 at 5pm PT (January 30, 2021 at 1:00 UTC).
They did note as many other exchanges have also done that clients residing in the U.S. will still be able to deposit, hold, and withdraw XRP with Kraken. For clients residing in other countries are not affected. XRP markets will continue to operate, uninterrupted, for clients outside the United States.
As I have blogged about before the price of XRP was cut in half on the December news. The price has stabilized and continues to consolidate under the $0.29 level. It seems to be pushing up against the key resistance of $0.30. If it fails to break that and breaches $0.265 I think we will get some real bearish momentum.
1 Day Chart
1 Hour Chart
While XRP fights this case I will not be trading it. There is just too much risk and it's getting harder to find an exchange that will let you trade it anyways.
Posted Using LeoFinance Beta
