You might also like
The recent lawsuits by the Securities and Exchange Commission (SEC) against cryptocurrency exchanges Binance and Coinbase have sparked concerns about the classification of certain cryptocurrencies as securities. On June 8, the SEC filed lawsuits citing various regulatory violations and lack of disclosure. The SEC’s classification of these cryptos as securities can have significant consequences, including potential delisting from US exchanges.
The initial news of the SEC lawsuits caused a sharp sell-off in the crypto market. However, it’s interesting to note that many of the tokens labeled as securities have since rebounded and are pumping despite the ongoing legal battle.
One leading token that defied the SEC classification is Algorand (ALGO). Since June 8, ALGO has experienced nearly a 6% increase in value. Other tokens like Cosmos (ATOM), Filecoin (FIL), Axie Infinity (AXS), and Coti Network (COTI) have also recovered most of their losses and are showing strong bullish momentum.
Algorand (ALGO) had faced a challenging period from November 2021, with a steep decline of 97% over 567 days. During the week of the SEC lawsuit, ALGO briefly dropped below its March 2022 lows. However, the price has since recovered and is currently trading at $0.13.
As the ALGO price approaches a long-term descending resistance line, a breakout could indicate the completion of the previous correction and the beginning of a new upward trend. This breakthrough may lead to a rally towards the closest resistance area at $0.41. However, if the resistance line holds, the price may experience a drop towards the next support level at $0.05.
Cosmos (ATOM) has fallen to a new yearly low but remains well above its 2022 lows. After briefly falling below its $8.50 horizontal support area during the week of the SEC lawsuit, the price has since recovered and validated the support level. This bullish development suggests that the previous breakdown may not have been legitimate.
If the current close holds, the ATOM price could increase towards the next resistance area at $12. However, a reversal and close below $8.50 may lead to a sharp fall towards $6.
Filecoin (FIL) has been under a descending resistance line since February, which caused a significant drop during the SEC lawsuit. However, FIL created a long lower wick during the crash, indicating buying pressure and validating the $2.90 horizontal support area.
Currently, FIL is attempting to break out from the resistance line, which, if successful, could lead to a surge towards the next resistance at $3.90. On the downside, a rejection could result in a retest of the $2.90 support level.
While the SEC’s classification of cryptocurrencies as securities has caused initial uncertainty, the market has shown resilience, and some tokens have already defied the classification by bouncing back. It remains to be seen how these lawsuits will ultimately impact the crypto market and regulatory landscape.
The SEC lawsuits against Binance and Coinbase have brought attention to the classification of cryptocurrencies as securities. While the market initially reacted with a sell-off, certain tokens have shown resilience and begun to pump again. This situation highlights the dynamic nature of the crypto market and the need for regulatory clarity. Stay informed with the latest developments in the crypto industry on Uber Crypto News.