Don't buy XRP now?...Wait until this condition is met

▲ Ripple (XRP) ©

While XRP (Ripple) has been stuck at around $1 for a long time, contrary to expectations, a cautious view has emerged that a significant rebound would be difficult unless an 'altcoin season' arrives.

According to investment media outlet The Motley Fool on May 2 (local time), XRP is currently trading at around $1.39, approximately 62% lower than its peak of $3.65 last year. Despite strong bullish forecasts over the past two years, the actual price movement has fallen short of expectations, leading to accumulated investor fatigue.

The outlet identified the market currently being in a 'risk-off' phase as the core reason. In such an environment, Bitcoin tends to maintain an advantage over most altcoins, and high-risk assets like XRP are bound to continue their relatively sluggish performance.

In this regard, an 'altcoin season' was presented as a key condition for a bullish reversal. This refers to a period when more than 75 of the top 100 cryptocurrencies outperform Bitcoin's returns over a 90-day period. However, currently only 41 coins meet this criterion, indicating that the market remains in a 'Bitcoin-centric phase'.

Indeed, the performance of major altcoins has also been sluggish. Over the recent 90-day period, XRP has fallen by 28%, Ethereum by 24%, and Solana by 34%. Bitcoin also dropped by 15% during the same period, but its relatively smaller decline suggests a continued concentration of funds.

Future variables include the U.S. cryptocurrency market structure bill, the Clarity Act. However, with the possibility of the bill's passage being delayed until late 2026 or 2027, it is unlikely to act as a short-term catalyst for the altcoin market. The outlet assessed that a Bitcoin-centric strategy remains effective over XRP until investor sentiment shifts to 'risk-on'.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*