XRP is currently suffering despite Bitcoin trading well above its previous all-time high. The reason for the altcoin’s fights is because the SEC beat the mint’s parent company and its top executives with a lawsuit.
The crypto community has been quick to point a finger for laughter despite its dangerous impact on the larger industry. Others are calling for the token to drop to near zero, but one trader says XRP will rise again one day regardless of the situation with the SEC. Here’s why.
XRP could rally with the next altcoin season, the trader claims
Bitcoin is trading well over USD 28,000 at the end of 2020. For a long time, crypto investors not only spat over the top asset by market capitalization to hit a new all-time high, but also for the “old season” expected soon after.
During the last market cycle, when Bitcoin’s bull market was confirmed at a new high above the 2013 high, the value of altcoins soared.
Related reading | Analyst who named Coinbase XRP delisting says SEC is “investigating” other altcoins
Bitcoin was back in focus when the asset went completely parabolic and made headlines in mainstream media in 2017. Again, the asset peaked, and the altcoin season that came immediately afterwards was what legends are made of. Ethereum rose to over $ 1,400 and XRP to over $ 3 per token.
Then even “abandoned coins” exploded 100,000% in a matter of weeks, including projects with no working product, no teams, no social footprint, or worse. Even downright scams like Bitconnect increased in price when stupid money came in.
The SEC lawsuit has not been friendly to XRP | XRPUSD on TradingView.com
Stupid money has yet to come in this time around, and the capital that is coming in is institutional money that is solely focused on Bitcoin. Altcoins, apart from Ethereum and DeFi tokens, were generally ignored.
Related reading | Bitcoin Dominance Doji: Why 2021 could mean fate for altcoins
This trend won’t last forever, and when the altcoin season returns, a top trader says that even XRP will look up again.
For now, Bitcoin dominance could signal that altcoins are generally doomed to fail. Hence, the chances are that the altcoin season called for by this trader will never actually arrive and that XRP and others will suffer a slow death after the next bull run of bitcoin.
Featured image from Deposit Photos, Charts from TradingView.com