The XRP price continues to trade sideways in the short term as the crypto market faces a spike in selling pressure. While major cryptocurrencies are likely to receive critical support, one analyst believes there is hope for the native XRP Ledger token.
At the time of writing, the XRP price is trading below the critical psychological level of around $0.5 and is at $0.47 with a loss of 2% in the last 24 hours. Over the past week, XRP has been one of the worst performers, down 9%.
Bitcoin Dominance Is Declining, XRP Price Will Top?
A pseudonymous analyst on social media platform X recently shared a chart showing a decline in Bitcoin Dominance (BTC.D). This metric measures the amount of total crypto market capitalization represented by BTC.
When Bitcoin dominance wanes, the altcoin sector will benefit as the metric suggests investors could move from the number one cryptocurrency to other assets. The analyst indicated that BTC.D is at a critical level and faces significant resistance.
In this sense, the metric could return below 50% of the total crypto market capitalization. The last time BTC.D was at current levels, XRP price rose above two major hurdles: $0.60 and then $0.70. The analyst declared:
$BTC.D Reached the level where the $XRP Lawsuit victory news came out. This caused a major altcoin rally at the time and also marked the high of 2023 so far for $BTC and many other coins.
Altcoin season approaching? But something has to get out of the way
According to this analysis, an altcoin season could be on the horizon for the XRP price and other similar cryptocurrencies. However, the analyst believes that the US Securities and Exchange Commission (SEC) should make a decision on the Bitcoin Exchange Traded Fund (ETF) on the spot.
The narrative surrounding this financial product has become increasingly influential in the emerging sector, and if the SEC approves it, there will be much less uncertainty surrounding the emerging sector. Over the past 24 hours, there has been some movement around Bitcoin ETF applications.
This move coincides with a spike in volatility across the board, and it could happen setting the stage for new news that will kick off the altcoin season or push the XRP price back to critical levels. On the possibility of the SEC approving the ETF, the best-case scenario for XRP and other tokens, says expert Eric Balchunas said:
(…) It is very possible that there will be a few discussions with SEC about these small, but unimportant details. So I wouldn’t say approval is imminent, but I would say that the fact that issuers are in a “back and forth” situation with the SEC on this is a huge positive IMO.
Cover image from Unsplash, chart from Tradingview