With the recent turn of events, the price of Ripple’s XRP witnessed a slight decline to $0.61 amidst legal battles between major players in the cryptocurrency industry. The tension escalated following a pivotal ruling against crypto exchange Coinbase by a US court marking a setback in its legal dispute with the US Securities and Exchange Commission (SEC). Coinbase Chief Legal Officer Paul Grewal shared an X post, shedding light on the matter.
Cryptocurrency exchange Coinbase faced a blow as the court denied its motion to dismiss the SEC’s lawsuit. The lawsuit alleged the exchange’s operation as an unregistered exchange, broker-dealer and clearing agency. This ruling comes as a significant development considering Coinbase’s reliance on Ripple’s previous legal victory against the SEC. The legal intertwining of the Ripple and Coinbase case stems from Ripple’s earlier success in a lawsuit against the SEC which provided partial relief for the company.
This decision by Judge Katherine Polk Failla presiding over the U.S. District Court for the Southern District of New York to allow the SEC’s lawsuit against Coinbase to proceed emphasizes the regulator’s stance on enforcing crypto regulations. The judge has set an April 19 deadline for both parties to agree on a case scheduling plan marking the next phase in what promises to be a closely watched legal battle.
Crypto lawyer Mike Selig commented on Judge Failla’s recent decision to dismiss a claim put forward by the SEC against Coinbase. He stated that the judge’s dismissal of the SEC’s claim that Coinbase acted as a broker by offering non-custodial digital wallet software was a significant setback for the SEC.
Meanwhile, XRP holders remain vigilant as they anticipate the outcome of the SEC’s lawsuit against Coinbase which could influence future rulings related to XRP’s programmatic sales. Technical analysis indicates a consolidation of XRP prices around $0.65, with indicators suggesting a potential downside correction if prices breach the crucial support level at $0.60.
The altcoin has slipped below the 50-day Exponential Moving Average (EMA), indicating a potential bearish trend. If the $0.606 support is invalidated, XRP could face further decline, potentially testing the 100-day EMA support around $0.555. However, the Average Directional Index (ADX) suggests that the bearish trend has yet to gain significant strength with the indicator still below the 25.0 threshold crossing.
