XRP price continues to trade sideways on short time frames as the crypto market faces increased selling pressure. While major cryptocurrencies are likely to become critical support, one analyst believes there is hope for the native XRP Ledger token.
At the time of writing, XRP price is trading below the critical psychological level of around $0.5 and stands at $0.47 with a loss of 2% in the last 24 hours. Over the previous week, XRP had one of the worst performances, recording a 9% loss.
bitcoin Dominance Declines, Will XRP Price Reach the Top?
A pseudonymous analyst on social media platform X recently shared a chart showing a decline in bitcoin (btc.D) dominance. This metric measures the amount of total crypto market capitalization represented by btc.
When bitcoin‘s dominance wanes, the altcoin sector benefits as the metric suggests investors could move away from the number one crypto toward other assets. The analyst indicated that btc.D is at a critical level and faces substantial resistance.
In that sense, the metric could return below 50% of the total crypto market capitalization. The last time btc.D held at current levels, XRP price cleared two major hurdles at $0.60 and then $0.70. the analyst fixed:
$btc.D reached the level where the news about the victory in the $XRP lawsuit came out. This sparked a huge altcoin rally at the time and also marked the 2023 high so far for $btc and many other coins.
Is altcoin season coming? But something needs to get out of the way
Based on this analysis, an altcoin season could be on the horizon for the price of XRP and other similar cryptocurrencies. However, the analyst believes that the US Securities and Exchange Commission (SEC) must decide on the bitcoin exchange-traded fund (ETF).
The narrative around this financial product has been gaining influence in the nascent sector, and if the SEC approves it, there will be much less uncertainty surrounding the nascent sector. In the last 24 hours, there has been some movement around the place of bitcoin ETF applications.
This move coincides with an increase in volatility across the board and could set the stage for new news that will either trigger the altcoin season or cause the XRP price to return to critical levels. On the possibility of the SEC approving the ETF, the best case scenario for XRP and other tokens, expert Eric Balchunas saying:
(…) It is very possible that there will be some exchanges with the SEC on these small but diabolical details. So, I wouldn’t say that approval is imminent, but I would say that the fact that issuers are in a “back and forth” with the SEC on this is, in my opinion, hugely positive.
Cover image from Unsplash, chart from Tradingview
