XRP Price Could Get A Boost, Dip In This Bitcoin Metric Suggests New Rally
The XRP price continues to trade sideways on low timeframes as the crypto market faces a spike in selling pressure. While major cryptocurrencies will likely bleed into critical support, one analyst believes there is hope for the XRP Ledger native token.
As of this writing, the XRP price trades below the critical psychological level of around $0.5 and stands at $0.47 with a 2% loss in the last 24 hours. Over the previous week, XRP was one of the worst performers, recording a 9% loss.
Bitcoin Dominance Declines, XRP Price Will Come Out On Top?
A pseudonym analyst on social media platform X recently shared a chart showing a decline in Bitcoin Dominance (BTC.D). This metric measures the amount of the total crypto market capitalization represented by BTC.
When the Bitcoin Dominance declines, the altcoin sector benefits as the metric suggests investors could move away from the number one crypto into other assets. The analyst indicated that the BTC.D stands at a critical level, facing substantial resistance.
In that sense, the metric could return below 50% of the total crypto market cap. The last time the BTC.D stood at current levels, the XRP price rallied above two major obstacles at $0.60 and then at $0.70. The analyst stated:
$BTC.D Got to the level where the $XRP Lawsuit win news came out. This caused a big altcoin rally at the time and also marked the 2023 top so far for $BTC and many other coins.
Altcoin Season Looming? But Something Needs To Get Out Of The Way
According to this analysis, an altcoin season might be on the horizon for the XRP price and other similar cryptocurrencies. However, the analyst believes the US Securities and Exchange Commission (SEC) needs to decide on the spot Bitcoin Exchange Traded Fund (ETF).
The narrative around this financial product has been gaining influence on the nascent sector, and if the SEC approves it, there will be much less uncertainty around the nascent sector. In the last 24 hours, some movement has been around the spot Bitcoin ETF applications.
This movement coincides with a spike in volatility across the board and could set the stage for fresh news that will trigger the altcoin season or push the XRP price back to critical levels. On the possibility of the SEC approving the ETF, the best scenario for XRP and other token, expert Eric Balchunas said:
(…) very poss there will be a few back and forths with SEC on these small but imp details. So I would not say approval imminent but I would say the fact that issuers are in a “back and forth” w SEC on this is hugely positive IMO.
Cover image from Unsplash, chart from Tradingview