XRP price towered across the crypto market on Thursday and Friday bolstered by the landmark ruling from Judge Analisa Torres in the Ripple vs. SEC lawsuit, deeming XRP not a security.
Although the lawsuit did not define what makes up a cryptocurrency and to a large extent, may have complicated regulations in the US, the fourth-largest cryptocurrency was saved from the dreaded security status.
Following the ruling, investor interest in XRP surged, propelling the price to $0.9351. Though, profit taking paused the rally with XRP retracing to trade at $0.7932 during the European session on Friday, higher support at $0.8 might mark the resumption of the uptrend.
Coinbase, Kraken Announce XRP Relisting
After facing regulatory pressure for more than two years, XRP holders can now smile after Judge Torres ruled that XRP is not a security in certain instances, particularly when sold on third-party protocols like cryptocurrency exchanges.
Analysts at Bernstein, a crypto broker said that the lawsuit outcome will eliminate the “securities overhang on tokens sold exchanges.” In addition, the landmark ruling is a “major relief for all tokens sold on secondary platforms.”
According to the analysts, the famous Howey test cannot be applied straightforwardly to crypto assets trading on exchanges. They argued that “the context of the transaction matters.”
“This weakens the U.S. Securities and Exchange Commission’s (SEC) stance that the securities law is clear and no separate clarity is required for digital assets, given the contextual interpretation required in every case,” the analysts at Bernstein said in a statement.
Many exchanges and digital asset entities that had delisted XRP citing regulatory scrutiny, including Coinbase, Kraken, and Bitstamp announced on Thursday that they intended to resume support for the token issued by Ripple.
“Following today’s court ruling, we have resumed trading of XRP in the United States effective immediately,” Bobby Zagotta Bitstamp USA CEO said in a written statement. “Bitstamp was one of the earliest exchanges to list XRP, and we are a leading liquidity venue for the asset globally.”
Gemini, another major U.S.-based crypto exchange run by the Facebook-founding Winklevoss twins, said it was also weighing the possibility of bringing back XRP.
Coinbase will re-enable trading for XRP (XRP) on the XRP network. Do not send this asset over other networks or your funds may be lost. Transfers for this asset remain available on @Coinbase & @CoinbaseExch in the regions where trading is supported.
— Coinbase Assets 🛡️ (@CoinbaseAssets) July 13, 2023
XRP Overtakes BNB Becoming Fourth-Largest Crypto
The payments-oriented crypto token XRP exploded both in price and market cap surpassing Binance’s native token BNB to become the world’s fourth-largest digital token.
With $41 billion in market share, XRP now sits behind the largest stablecoin, Tether (USDT) with $83 billion. Meanwhile, BNB has assumed the fifth position with nearly $40 billion in market share.
XRP price could face a sudden correction based on the overbought conditions exhibited by the Relative Strength Index (RSI).
That said traders would be watching the XRP price reaction to resistance at $0.8. If defended, investors would be encouraged to keep buying XRP with the hope of a break above the psychological $1 resistance.
The Money Flow Index (MFI) movement into the overbought area above 80 means that more funds are flowing into XRP markets compared to the outflow volume. What this means is that XRP price is most likely to keep trending north than reverse the trend to retest support at $0.06 and $0.5, respectively.
Related Articles
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
