- Coinbase could relist the XRP token if Ripple wins the ongoing lawsuit against the SEC.
- The exchange will initiate the relisting process immediately after the court pronounces itself of the case.
- XRP is up 1.5% in the last 24 hours and has flipped the 50-day SMA back to support.
XRP price flashed green on Tuesday after rising 1.5% in the last 24 hours to undo Monday’s losses. The token has just cruised past a fundamental resistance level as bulls focused on pushing the price higher following rumors that Coinbase, the largest crypto trading platform in the U.S., was planning to relist XRP as soon as it wins the ongoing case against the Securities Exchange Commission (SEC).
Coinbase To Relist XRP
Coinbase delisted XRP in January 2021 after the SEC brought charges against Ripple Labs in December 2020. On several occasions, the “XRP Army” has urged the San Francisco-based crypto exchange to relist the international remittances token, but Coinbase did not take any step to that effect.
Recently, the team behind LBRY, a blockchain-based file-sharing network, joined the Ripple community in calling for XRP to relist on Coinbase. LBRY reaffirmed its support for XRP after the SEC settled its lawsuit against LBRY Inc. after the presiding District Judge concluded that LBRY tokens sold in the secondary market are not securities.
This support came in the form of a Twitter post that read:
“Coinbase should relist $XRP. Under the SEC vs. LBRY standard, $XRP sold by secondary holders is not a security.”
In December 2020, the US SEC filed a lawsuit against cryptocurrency platform Ripple, its CEO, and its chairman for illegally selling unregistered securities worth $1.3 billion. The regulatory agency claimed that Ripple illegally marketed XRP, the world’s sixth-largest cryptocurrency, to retail customers.
Over the years, many players in the crypto industry have called out the SEC on the case against Ripple and its executives, saying that XRP is not a security. The latest is Coinbase’s chief legal officer (CLO) Paul Grewal, who said that if Ripple wins the case against the regulator, Coinbase will relist the XRP token.
Speaking to Thinking Crypto host Tony Edward in an interview on March 16, Grewal was optimistic about a Ripple win but noted that relisting did not depend entirely on the question of a court victory as there might be other factors that could be considered, including the exact details of the court judgment. He added:
“I know that for many XRP holders, it has been frustrating that they have not been able to trade their assets on Coinbase while this SEC case has been pending.”
While explaining the process of relisting XRP, Grewal said that it would depend on “the grounds of the ruling, the judge’s legal reasoning, and Coinbase’s assessment of whether or not the appeals court will uphold the decision.” As such, he did not give an exact date or specific timeline for when Coinbase would relist XRP after the judgment.
This is because, as a publicly listed company, Coinbase needs to move cautiously on this matter, respecting every token subject to federal court litigation, explained Grewal.
XRP Price Rises Higher
XRP responded positively to this news, rising 8% between March 16 and 17 and escaping from a descending parallel channel. Although Monday’s sell-off threatened to take the price back into the confines of the bearish pattern, the current rally has seen the token shatter the 50-day Simple Moving Average (EMA) at $0.3845, which paves the way for more gains.
The Relative Strength Index (RSI) was moving upward in the positive region. The price strength at 55 suggested that the bulls had taken control of the XRP price, adding credence to the bullish outlook.
XRP/USD Daily Chart
Therefore, a daily candlestick close above the 200-day SMA at $0.3996 would open the path for a move to the channel’s tip at $$0.4337. Above that, the cross-border remittances token could rise to tag the $0.45 psychological level. This would bring the total gains to 15%.
Along with the hope of a Coinbase relisting, the XRP Army is also pleased about the firm’s recent partnership and investment with a Singaporean-based venture capital fund to accelerate Web3 adoption.
However, suppose the FUD of the crypto market caused by the U.S. banking crisis takes precedence. In that case, the XRP price could decline, possibly sliding below the channel’s upper boundary at $0.3779. The following support would be the middle boundary of the track at $0.360 and the channel’s support line at $0.3446.
Traders could expect the international remittance token to take a breather here. This will give buyers space to breathe and regroup before initiating another recovery.