Why is the XRP price up today?
YEREVAN (CoinChapter.com) — XRP coin rose 6% to $0.78 on July 19. The token’s move came as a part of a consolidation phase after an explosive 70%-plus surge due to Ripple’s major win in the lawsuit against the US Securities and Exchange Commission (SEC).
Thanks to the jump, the token price broke above a key technical resistance near $0.542, which has hindered its breakout attempts since early May. As mentioned in the previous XRP review, the bulls are now defending the $0.70 support zone. The price is trading in a range and preparing for the next move.
The pullback after the July 13 spike could be a corrective move and a cool-down period.
Meanwhile, the headway in the SEC vs. Ripple case explains the surge.
XRP is NOT a security, says the court ruling
In detail, the SEC accused Ripple of fraud in 2020, citing their “unlawful” sale of $1.3 billion worth of XRP tokens as unregistered securities.
However, after a lengthy legal battle, District Judge Analisa Torres ruled on July 13 that the token was not a security, stating “XRP, as a digital token, is not in and of itself a “contract, transaction[,] or scheme” that embodies the Howey requirements of an investment contract.“
Platforms relist the token, contributing to the price surge
Following the US federal court decision, Coinbase, the largest US crypto exchange, resumed the sale of the coin on its platform.
Coinbase suspended token trading in January 2021 in light of the aforementioned lawsuit. The exchange announced it “will re-enable trading for XRP on the XRP network,” provided there is sufficient liquidity for the asset on its platform.
Paul Grewal, Chief Legal Officer at Coinbase, also announced their listing.
“We’ve read Judge Torres’ thoughtful decision. We’ve carefully reviewed our analysis. It’s time to relist… Ripple’s Programmatic Sales of XRP [on digital asset exchanges] did not constitute the offer and sale of investment contracts.”
he wrote.
Meanwhile, Crypto exchange Gemini was the first to announce that it was “exploring the listing of XRP for both spot and derivatives trading.“
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