The altcoin market has seen such a strong rebound today that even XRP has posted some gains.
Despite seeing a slight climb today, the cryptocurrency remains trapped within the range it has been caught within throughout the past few months and years, with buyers unable to surmount the lower-$0.30 region despite the strength across the aggregated market.
There are a few reasons for this weakness, including the lack of utility garnered by the token, the relentless selloff from its 2017 highs, and the waning enthusiasm surrounding it.
The previously robust “XRP Army” that were loyally backing the token have all moved on as it sees severe underperformance of Bitcoin and other altcoins.
Where it trends next will likely depend mostly on the aggregated altcoin market, but its lack of a correlation with either Ethereum or Bitcoin may continue plaguing its price action.
One analyst is noting that there are some signs that the cryptocurrency is reaching a pivotal level against BTC that could shift its trend back into buyers’ favor.
XRP Swings Higher Amidst Market-Wide Upsurge
At the time of writing, XRP is trading up just over 5% at its current price of $0.25. This is around the price at which it has been trading throughout the past few years, with buyers unable to break out of the $0.20 region.
Today’s upswing is slightly positive for the embattled token’s holders. Still, until it can break above the $0.30 region, there’s only a slight chance that it will see any parabolic momentum.
The dwindling community sentiment, lack of serious utility, and stagnant price action have all struck lethal blows to its technical strength.
Unless Ripple reengages its efforts to drive utility to the token, there’s a strong possibility that it will continue losing value against Bitcoin and other altcoins.
Analyst: The Token is Reaching a Pivoting Point against BTC
One analyst explained that although XRP is diving lower against its Bitcoin trading pair, there’s a strong chance that it will soon reverse this trend due to it reaching a pivotal point.
“Strong Ichi momentum… However, XRP just tapped a WP Level, right on a 1W Pivot, something certainly should not be ignored, next pivot in December, paying attention to this one on the small TFs.”
Image Courtesy of Mitoshi. Source: XRPBTC on TradingView.
The coming few days should provide investors with insights into where altcoins like XRP will trend while Bitcoin enters a bull market.
Featured image from Unsplash. Charts from TradingView.