Coinbase, the largest U.S. cryptocurrency exchange, announced it will suspend trading of XRP (XRP) by mid-January, following the Securities and Exchange Commission (SEC)'s recent lawsuits against Ripple Labs. The SEC alleges XRP is an unregistered security, prompting Coinbase to delist the asset to comply with regulatory standards.
Key Details of the Suspension
Timeline:
- Limit-only trading begins December 28.
- Full suspension effective January 19 at 10 a.m. PST.
- Note: Dates are subject to change.
Customer Impact:
- Deposits and withdrawals of XRP remain supported via Coinbase Custody and Coinbase Wallet.
- Trading pairs involving XRP will be disabled.
Regulatory Context:
- The SEC claims Ripple Labs raised $1.3 billion through XRP sales without proper registration.
- If classified as a security, XRP trades may incur capital gains taxes.
Market and Technical Analysis of XRP
Recent Trends
Upward Momentum:
- XRP’s price crossed above its 50-day moving average on July 3, 2025, signaling a potential trend reversal.
- Historical data shows a 64% chance of continued price increases post-breakout.
Technical Indicators:
- MACD turned positive on June 25, 2025, with a 59% success rate for sustained uptrends.
- Stochastic Oscillator suggests overbought conditions, hinting at a possible pullback.
Bearish Signals
- The 10-day moving average fell below the 50-day average on June 2, 2025, historically leading to further declines 37.5% of the time.
- Aroon Indicator entered a downward trend on June 12, 2025, indicating potential sharp drops.
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FAQs
Q: Can I still hold XRP on Coinbase after the suspension?
A: Yes, XRP will remain accessible in Coinbase Wallet and Custody, but trading will be halted.
Q: Why is the SEC targeting XRP?
A: The SEC alleges XRP qualifies as a security, requiring registration under U.S. law.
Q: What are the tax implications if XRP is deemed a security?
A: Traders may owe capital gains taxes on profits from XRP transactions.
Market Cap and Performance
- Average Market Cap: $133.35 billion.
Recent Volatility:
- Weekly price growth: 7%.
- Quarterly decline: -7%.
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This decision underscores the growing scrutiny of cryptocurrencies by regulators. Investors should monitor updates and diversify portfolios to mitigate risks.