Despite the sales caused by the SEC lawsuit, altcoins such as LDO, LUNC, and STX manage to find new buyers. Crypto analysts suggest that the legal battle could provide new opportunities for ‘rooted altcoins’.
SEC lawsuit leads profit hunters to these altcoins
One of the coins that managed to stay in the green during the Binance and Coinbase lawsuits of the week was XRP. Expecting the Hinmann documents to be made public on June 13, Ripple is keeping its weekly earnings in the green around 2.5%.
At the time of writing, XRP is trading in the $0.52 region, where it is up 0.64% in the last 24 hours. Compared to the previous week, XRP price was relatively bullish while Binance Coin (BNB), Cardano (ADA) and Solana (SOL) experienced sharp corrections.
The SEC’s lawsuits focused on Binance Coin (BNB), Cardano (ADA) and many more. These cryptocurrencies risk being labeled as securities in the US. For this reason, most crypto exchanges may disconnect from these cryptocurrencies for a while.
Binance.US has begun halting trading on this and other “cryptocurrency securities,” as the regulator calls it. As a result, prices are suffering and suggesting bearish moves in the short term. The positive news is that Binance.US has reduced the number of trading pairs it will delist to 10.
“Essential altcoins may rise again”
Well-established altcoins like Bitcoin and Litecoin could be the biggest beneficiaries of the SEC storm, according to crypto analyst Daan Crypto. Daan Crypto writes about this in a recent tweet:
I think there might be some smart people who know if these coins are going to peak and they can get some great discounts. I prefer to take the easy way (left side of the bell curve) and trade other cryptocurrencies for the foreseeable future.
Several $ALTS Classified as Securities by the SEC.
What to trade?
Some thoughts on the situation 👇
I'm not sure how long we’ll see the current FUD wave continue. Can’t do any predictions on that.
I’m mostly interested in what might be smart to trade and what is not. pic.twitter.com/F7MHSHb5Wd
— Daan Crypto Trades (@DaanCrypto) June 8, 2023
The analyst recommended that investors stick to Bitcoin and other “rooted cryptos” like Litecoin. The SEC and other regulatory bodies in the US are implying that BTC is a commodity under their own laws. However, these cryptocurrencies already have a clearer status than new cryptocurrencies.
Beware of XRP
In the long run, when the SEC case against Ripple is finally settled or settled, XRP and other altcoins will likely rally. According to Daan Crypto’s expectations:
If Ripple wins, expect some big rallies on basically every altcoin named a security by the SEC. Cheer for XRP even if you don’t like the project itself. Everyone is fighting here.
According to senior executives from Ripple, there is a possibility that the outcome of the lawsuit will come out very soon. Meanwhile, investors can make some profit by taking positions on old cryptocurrencies. cryptocoin.comAs you follow, June 13 will be the date when Ripple and Binance’s SEC hearing intersect.
