XRP is trading in the green zone on higher timeframes despite the setback suffered by the majority of the cryptocurrency market. The token is in a legal battle with the US Securities and Exchange Commission (SEC) and payment company Ripple. The legal dispute began two years ago but is more relevant than ever in light of the hard-line measures taken by regulators against the emerging sector, attracting speculators and traders aiming to profit from its outcome.
With the SEC filing two new lawsuits against the cryptocurrency exchanges Binance and Coinbase, XRP could benefit from a positive outcome, and other tokens could register a positive correlation. In other words, if XRP wins its case in court, other tokens will follow a similar path.
At present, XRP is trading at $0.52, with a loss of 2% in the last 24 hours. In the previous week, the token recorded a gain of 3% as the market collapsed and Binance Coin (BNB), Cardano (ADA), and Solana (SOL) experienced significant corrections.
The SEC lawsuits have brought Binance Coin (BNB), Cardano (ADA), and many other coins to the forefront, which could be considered securities in the US, meaning that most cryptocurrency exchanges cannot offer them for a while. As a result, Binance.US has begun interrupting trading on these and other "crypto asset securities," as the regulatory agency calls them. Their prices have suffered and could continue to face downward pressure in the short term.
According to pseudonymous analyst Daan Crypto, some of the tokens targeted by the SEC could rise again, benefiting traders who are willing to take the risk. On Twitter, the analyst wrote:
"I think there may be some smart people who know if these coins have a leg up or not and are getting amazing discounts. I'd rather take the easy route (left side of the bell curve) and trade other coins in the near term."
The analyst suggested that traders stick with Bitcoin and other "dino coins" like Litecoin, as these digital assets already have a clearer status than newer cryptocurrencies. The SEC and other regulatory bodies in the US have hinted that BTC is a commodity under their laws.
In higher timeframes when the Ripple case against the SEC is finally resolved, XRP and other altcoins are likely to rise:
"If Ripple wins expect some massive rallies in virtually every altcoin that has been classified as a security by the SEC."
The fate of this case could soon be decided, according to top executives at the payment company. Meanwhile, traders could make some profits by taking positions on older coins.
Image source: Unsplash, Chart from Tradingview.
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