The SEC has long been a nightmare for cryptocurrency investors, but this could now change for some altcoins. For years, the US Securities Regulator has been unable to subdue XRP Coin, and as of last year, it has been trying to label nearly 50 cryptocurrencies as securities. This poses a serious risk for assets other than BTC.
The Future of Litecoin (LTC)
XRP, MATIC, and many other cryptocurrencies are considered to meet the SEC’s securities standards. However, they do not think the same for Bitcoin, and some cryptocurrencies may escape this nightmare along with BTC. We mentioned yesterday the application made by the Coinbase exchange. If there are no surprises, DOGE, LTC, and BCH could receive the “commodity” label from the CFTC on April 1st.
LTC’s price has started to recover following this development. This significant event is expected to affect its short and medium-term performance, potentially increasing the appetite of Litecoin investors in the coming days.
Moreover, since LTC profitability is currently at 58%, surpassing the $100 level would not be surprising. Normally, when profitability in BTC and altcoins reaches the 95% threshold, price corrections are triggered, and with LTC ready for a news-supported rally, there is ample room for growth.
LTC Coin Commentary
The Reserve Risk metric also indicates that the risk of LTC investors starting to sell is low at this stage. The altcoin, which experienced significant price fluctuations during last year’s halving period, is now quite balanced, and a noteworthy portion of its investors have seen at least one bull market.
Investors aware of the current bullish trend focus on longer-term goals in popular, established altcoins like LTC and see dips as accumulation opportunities. When investor confidence is high and the price is low, the mentioned metric gives a bullish signal. In other words, both the news flow and this data indicate a positive outlook for LTC.
In an optimistic scenario for LTC, closures above $86 could lead to tests of $100 and $113. However, if the $86 region remains strongly unbroken, a retracement to $79 and $71 is likely.
