Loyal Ripple (XRP) holders are elated after bullish comments from Coinbase Chief Legal Officer fuelled 10.5% rally over the weekend.
Speaking on the Thinking Crypto podcast, Paul Grewal (Coinbase’ Chief Legal Officer) explained that Coinbase was closely “monitoring” developments around the Ripple V. Securities and Exchange Commission (SEC) ahead of the highly-anticipated court judgement tipped for the Q2 2023. This comes as XRP was delisted by Coinbase in December 2020.
“[The 2020 XRP delisting] hasn’t stopped Coinbase from monitoring the state of the litigation,” said Grewel.
“I’ve certainly paid attention to the fact the defendants in that case have done a masterful job of pushing the SEC and raising serious questions about the SEC’s entire theory that underlines that case.
“In fact I was so persuaded by those efforts that Coinbase filed its own brief in that case, in support of several of the important defences that Ripple and others are raising.”
Indeed, the outcome of the Ripple legal case has huge ramifications for the wider US crypto industry, with the classification of tokens as securities becoming a dangerous reality for the space. As the SEC continues to mount enforcement efforts against the industry ahead of any clear regulation – the quest for clarity has gravitated towards this case, which will offer precedent to numerous pending crypto lawsuits by the SEC such as a case against KuCoin for launching unregistered securities.
“The decision of the trial court is just the first step … of a longer process, this case has a very strong likelihood of being appealed regardless of who wins and loses at the trial court level,” explained Grewel.
“So as much as all of us would like resolution of this particular issue soon, I suspect we’re all gonna be in for a longer wait further while that case plays out in the courts.
However, when pushed on whether a positive ruling this year could see XRP relisted on Coinbase the CLO kept his cards characteristically close to his chest.
“[A Coinbase XRP relisting?] It’s possible – it would all depend on the basis for the ruling – the judges legal reasoning, our assessment of whether an appeals court would affirm that decision – so a lot is gonna depend on the particulars of how that court rules,” added Grewel.
“I know that’s not going to be terribly satisfying to some [XRP holders], but we do have a responsibility as a publicly listed company to tread carefully in this area – with respect to any token that’s the subject of federal court litigation.
“But I am very eager … to see how the court rules, and what I can say is as soon as we have that ruling we will put [XRP] into [Coinbase’] process of whether we need to revisit that delisting decision.”
The bullish comments – which hinted, despite a long journey ahead, at a positive outcome for XRP in the legal case and a potential relisting on Coinbase. XRP trading volume surged in the aftermath of the interview, as the bullish sentiment from such a well-positioned industry insider ignited a blaze of accumulation. Indeed, a Coinbase relisting could see XRP reclaim past heights around $1.95.
Paul Grewal, chief legal officer at @Coinbase talks about #Coinbase delisting #XRP after the #SEC lawsuit against @Ripple, if Coinbase will relist XRP based on Judge's decision and more.
WATCH the full interview https://t.co/UWkPcfRjoA#interview #law #legal #ripple #bitcoin… https://t.co/DjEAARLo98 pic.twitter.com/H5mM5bBHs6
— Tony Edward (Thinking Crypto Podcast) (@ThinkingCrypto1) March 17, 2023
Ripple (XRP) Price Analysis
On the tail-end of the weekend rally, XRP is now trading at a current price of $0.38 (a 24 hour change of -1.48%) in a small localised retracement following the explosive upside move.
XRP gained +10.5% in just 3 days following the comments by Paul Grewel, bringing XRP’s total 2023 gain to +12.2% YTD.
In a continuation of a longstanding ranging pattern, XRP’s movements remains increasingly coiled as a descending pendant pattern tightens price action.
However, legion strength among XRP holders could see the advent of an upside breakout as price movements push towards upside resistance on the short-time frame (STF).
But with a few months of established ranging, and no imminent news expected from the Ripple V. SEC case – it is unlikely a breakout will push far.
This is because the 200 Day MA has been acting as a suppressive ceiling of resistance on the topside of the XRP trading channel – bottling upside potential around $0.40.
Indicators depict a token stifled by resistance despite an uptick in fundamental sentiment.
The RSI is moving up from oversold – now mid-range at 51.
Curiously the RSI hasn’t overheated since January 2023, suggesting there could be capacity for an XRP rally – things haven’t fatigued yet.
The MACD supports this notion, reading bullish divergence at 0.0018 – despite sitting below the 200 Day MA.
This leaves XRP with upside targeting a reclaim of pre-FTX posturing at $0.50 (a move of +32%).
Whereas downside risk is more limited, with a return to the depths of 2022 near by at $0.30 (representing -20.8%).
Overall this gives XRP a Risk: Reward ratio of 1.53 – a good entry characterised by limited downside risk.
Despite the attractive entry, upside price action is limited on the STF until there is clarity around the Ripple V. SEC case.
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