Several cryptocurrencies are indicating possible recoveries after a rocky week for the cryptocurrency market, with XRP, Litecoin (LTC), and Stellar (XLM) leading the pack.
Santiment, a data analytics company, noted in a recent tweet that these three digital assets are shown encouraging signs of a recovery despite the industry-wide decrease in crypto market capitalisation during the previous week.
According to the company’s measurements, which gauge the gap between market value and realised value, traders have incurred large losses. The consequence is that this downward trend could continue, although certain alternative currencies’ durability offers some cause for optimism.
In the last seven days, XRP has decreased by 16.2%, but in the last 24 hours, it has increased by 1.9%. This latest surge implies some hope for the digital currency despite the general market decline.
Significant cryptocurrencies like Bitcoin and Ethereum have also fallen over the last week by 11.2% and 9.0%, respectively. Over the same time, Binance Coin (BNB) had a drop of 10.3%.
Regulatory concerns
However, it’s crucial to consider the context of this data. The price of cryptocurrencies is notoriously erratic, with big swings in price occurring often. Regulations changes or macroeconomic developments, for example, might have a significant influence on the sector.
The SEC’s continuing litigation disputes with the sector are prominently displayed. According to U.Today, the SEC recently filed an appeal against a court decision from July that determined that XRP dividends for services are not investments of money and that Ripple’s sales and offers of the cryptocurrency did not encourage investors to expect returns based on others’ labour. Classifying XRP’s offerings and sales is the main goal of this appeal.
The following days and weeks look to be crucial for Bitcoin ETFs. Recent tweets from Nate Geraci underscore the excitement surrounding a likely verdict in the Grayscale litigation and the SEC’s forthcoming decisions on a number of filings, including one from BlackRock. Given that the Grayscale decision is anticipated to arrive before the SEC’s decision, the timing becomes even greater significance.
