Breaking News
Get 40% Off 0
Is NVDA a 🟢 buy or 🔴 sell? Unlock Now

SEC Cracks the Whip: Which Cryptocurrencies Are Set to Suffer the Most?

By Investing.com (Damian Nowiszewski)CryptocurrencyJun 14, 2023 06:24
ca.investing.com/analysis/sec-cracks-the-whip-which-cryptocurrencies-are-set-to-suffer-the-most-200571355
SEC Cracks the Whip: Which Cryptocurrencies Are Set to Suffer the Most?
By Investing.com (Damian Nowiszewski)   |  Jun 14, 2023 06:24
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
 
BTC/USD
+1.25%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
ETH/USD
+1.89%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
ADA/USD
+2.20%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
SOL/USD
+2.91%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
COIN
-2.88%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
  • The SEC is targeting lawsuits against major digital currency exchanges
  • Cryptocurrencies have been under pressure recently as a result
  • Meanwhile, Bitcoin is testing a key technical area

Last week, the U.S. Securities Exchange Commission (SEC) decided to launch a legal offensive against the largest digital currency trading exchanges: Binance and Coinbase (NASDAQ:COIN).

The main focus of the accusations is potential illegal trading in cryptocurrencies, which the SEC believes should be classified as securities and subject to regulatory requirements.

The commission lists more than 60 cryptocurrencies that it believes fall under the definition of a security, among which we can see the popular altcoins Cardano and Solana.

One of the main arguments in this situation is the so-called Howey Test, which defines the criteria for determining what can be considered a security and what cannot.

Critics, on the other hand, point out that it was introduced in 1946 and no longer corresponds to the realities of today's financial markets.

The SEC's actions have created more headwinds, leading to a decline in the overall digital currency market.

Cryptocurrencies Market Cap
Cryptocurrencies Market Cap

Solana Plummets

The possible classification of Solana as a security would be a problem for the community as a whole, as can be seen in the asset's price, which over the past week recorded a decline of more than 26%.

The aftermath of this event included its delisting from Robinhood.

The Solana Foundation strongly rejects the classification defined by the SEC while declaring its willingness to cooperate with regulators.

As a result, it looks like the key factor that will dictate the price in the medium term will be further reports on the current legal situation between the SEC and Binance, Coinbase.

A legal victory against the regulator could significantly contribute to Solana's upward momentum.

Cardano Follows Suit

Cardano's recent categorization as a security by the SEC has led to a significant decline in its price, reaching its lowest levels since late 2020.

Currently, there is support from the demand side, but the selling pressure remains a concern. If the downward trend continues, the next target could be the support area around $0.15.

Cardano Weekly Chart
Cardano Weekly Chart

According to the Santiment analytics platform, the average unrealized loss at the 0.33 level stood at 13%.

This, coupled with the declining Age Consumed indicator indicating a reduced likelihood of long-term investors selling, may limit further declines.

However, for a return to an uptrend, it is crucial for the legal situation to resolve, which would be reflected in a clear breakout above the 0.45 level from a technical standpoint.

Will SEC's Move Support Bitcoin in the Long Term?

According to statements from individual SEC members, it appears that both Bitcoin and Ethereum may not be classified as securities, giving them an advantage over their main competitors in the long run.

This view is supported by the fact that neither digital currency was mentioned in the lawsuit. However, currently, the predominant negative sentiment is affecting the performance of the most prominent cryptocurrency.

It is facing a significant test at the confluence of correction levels and the support level around $25,000.

Bitcoin Daily Chart
Bitcoin Daily Chart

If the key support level around $25,000 is broken, sellers may target the next support near $22,000.

In terms of the overall cryptocurrency market value, it's important to pay attention to today's Fed meeting. The decisions made during the meeting could significantly affect cryptocurrency prices in the coming days and weeks.

The InvestingPro tools assist savvy investors in analyzing stocks. By combining Wall Street analyst insights with comprehensive valuation models, investors can make informed decisions while maximizing their returns.

You can conveniently access a single-page view of complete and comprehensive information about different companies all in one place, saving you time and effort.

Start your InvestingPro free 7-day trial now!

Disclaimer: This article is written for informational purposes only; it does not constitute a solicitation, offer, advice, counseling or recommendation to invest as such it is not intended to incentivize the purchase of assets in any way. As a reminder, any type of asset, is evaluated from multiple points of view and is highly risky and therefore, any investment decision and the associated risk remain with the investor. The author does not own the stocks mentioned in the analysis.

SEC Cracks the Whip: Which Cryptocurrencies Are Set to Suffer the Most?
 

Related Articles

The News Crypto
Bonk (BONK) Price Prediction 2024, 2025, 2026-2030 By The News Crypto - Feb 23, 2024

In this Bonk (BONK) price prediction 2024, 2025-2030, we will analyze the price patterns of BONK by using accurate trader-friendly technical analysis indicators and predict the...

Dr. Arnout ter Schure
Local Top in Bitcoin Soon? By Dr. Arnout ter Schure - Feb 20, 2024

In our last update on Bitcoin (BTC), from almost a month ago, we found that based on our Elliott Wave Principle (EWP) count: “…BTC should now be in (grey) W-a of green...

SEC Cracks the Whip: Which Cryptocurrencies Are Set to Suffer the Most?

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email