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Ripple’s victory and the coming of a new altcoin season

Igor Grigorchenko

News editor

Jul 14, 2023 at 05:43

On Ripple’s court victory and crypto market euphoria, we guess about the potential alt season, and discuss the most important chart of all.

Everything you need to know about Ripple’s victory

After the court’s acquittal ruling, the XRP exchange rate rose by 66% overnight, and the asset also climbed to 4th place in cryptocurrency market capitalization. Bitcoin rose above $31k, and Ethereum broke through the psychological level of $2k at one point.

And while the ruling in court on XRP has caused euphoria in the crypto market, it’s definitely not a final victory just yet. Ripple Labs’ triumph in court against the SEC is seen as a significant blow to the regulator’s “war” on crypto, but crypto lawyers warn that it’s not a certain final victory for the industry.

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Here are some drowning details that got lost in the noise of the victory:

  • Law firm partner Stephen Palley of Brown Rudnick noted that the summary judgment is only “partial” and that Judge Torres’ ruling does not set a precedent; instead, it can only serve as a persuasive commentary for future courts to follow if they so choose.
  • Furthermore, the court’s decision separately notes that token sales via SAFT, OTC, private rounds, ICOs, and launchpads are still considered illegal. This means that Ripple Labs can still be sued for institutional and OTC sales of XRP, which they have also done previously. This point in the court’s conclusion is potentially very dangerous, while the market ignores it, celebrating acquittal on the main point of the dispute.
  • Palley and others noted that there is also the possibility that the SEC could appeal the decision, raising the possibility that a higher court would overturn the groundbreaking ruling made by Judge Torres. The SEC has so far said it is studying the court’s decision closely.
  • Coinbase, Kraken, Gemini, Crypto․com, Bitstamp, and a number of other crypto exchanges will relist XRP after the court ruling on Ripple. With the appeal issue still open, experts say this is a hasty decision on the part of crypto exchanges.

Ripple’s victory as a catalyst for the start of the alt season

After the historic decision on Ripple, it’s a good time to ask an important question: who is also affected by this decision in a similar way? More recently, the SEC also accused a number of top altcoins of similar sins to XRP — allegedly being securities. However, the SEC did not sue them, but it led to the collapse of the market for these altcoins, and some exchanges rushed to delist them. And now what?

Solana, on the news of Ripple’s victory, rose disproportionately high by 25%, and Cardano by 21%. Not bad? It’s probably time to review the top altcoins for their toxicity because the Ripple decision is potentially a game changer for them too. So if you’re too late to bet on XRP, there’s still an opportunity to bet on the following favorites.

Notice how Bitcoin’s dominance has plummeted after the news of XRP’s win; it could be a serious claim to start the altcoin season. Let’s wait for the recalculation of the altcoin index in the coming days, but in the meantime, we advise you to think hard this weekend about a group of previously “cursed” by the SEC altcoins.

The most important chart

The crypto market capitalization chart clearly demonstrates that the macro correction has been repeated almost perfectly and everything is ready for another growth cycle (which will start at the end of this year or the beginning of next year).

  • In previous times, before the start of the Big Rally, we had quite noticeable corrections. And now there is still a danger of this repeating itself before the Big Rally.
  • Looking at the chart  it is also obvious that the strength of each new bull run is diminishing. You can no longer expect hundreds of Xs like before. But the fact remains that, judging by this chart, we are on the verge of a real uptrend.

Other current events

  • We warn readers that starting today, the US reporting season starts, which will strongly influence the markets (including crypto) until the Fed meeting at the end of July. In the coming days, major companies will be reporting their earnings. When giants report negatively, the market often reacts with strong volatility. The correlation of crypto with the NASDAQ is common knowledge, so you should remain cautious in trading until the end of July.
  • Earlier, we talked about the activities of financial market supergiants, Blackrock and Fidelity, which are trying to launch ETFs. Yesterday, a new major player entered the crypto market: Vanguard Group, whose combined value exceeds 7 trillion dollars. But he used a different way to enter crypto: he bought a 10% stake in major bitcoin miner Riot Platforms. This kind of activity is extremely important to follow because the interest of companies of this scale in crypto seems to be becoming mainstream.
  • The SEC is suing crypto-bankrupt Celsius, and former CEO Alex Mashinsky has already been arrested. It took the SEC a year to realize what happened, but finally the regulator decided to act.
The SEC pondered for a year…

 

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