🔥Airdrop Is Live🔥 CaryptosHeadlines Media Has Launched Its Native Token CHT. Airdrop Is Live For Everyone, Claim Instant 5000 CHT Tokens Worth Of $50 USDT join the Airdrop at the official website, CryptosHeadlinesToken.com
Advertise here

Could a Drop in Bitcoin Dominance Boost XRP Price?


Crypto analyst Dark Defender has pointed out a correlation between Bitcoin Domination and XRP price appreciation. In the past, XRP started its bull run when Bitcoin’s dominance index hit a high and then would fall.

This relationship was seen in the big bull runs of 2017 and 2021. It’s when the XRP price moved in tandem with changes in Bitcoin’s market dominance.

Bitcoin was at its peak in early 2017 with dominance standing at 96.25%. This provided little chance for other coins such as XRP to soar.

– Advertisement –

When the dominance of Bitcoin started to decline in March 2017, Ripple’s XRP capitalized on the situation, rising by 284% within the month. Following the next few months, Bitcoin’s dominance remained on the decline.

XRP reached its highest point at $3.31 in January 2018 when Bitcoin’s dominance was at 35.41%.

Source: X

This pattern emerged again in 2021, for instance, Bitcoin dominance peaked at 73.63% at the beginning of the year. XRP price had hit the lowest at $0.2082 but as the dominance of Bitcoin reduced XRP/USD spiked up.

It closed January with a 125% rise. This inverse correlation may further suggest that the dominance of Bitcoin over XRP could be a key factor in XRP price fluctuations.

Current Market Conditions: Bitcoin Dominance Nearing a Peak

At the moment, Bitcoin dominance has once again increased to a certain level. It reached reaching 59.75%, which may mean another peak.

Dark Defender’s analysis suggests that when Bitcoin’s dominance rises to such a high level, a drop is normally followed by an altcoin bounce with XRP being a prime example.

Another veteran crypto analyst who has recently noticed the uptrend in Bitcoin’s dominance is Michaël van de Poppe. He also mentioned that it could be a shift for the altcoins if the percentage of Bitcoin in the circuits of the market starts to decrease.

The current situation of XRP has been seen at the beginning of the bull trends. It could most probably be due to the high dominance of Bitcoin.

But as history shows, the change in Bitcoin’s dominance could be a good opportunity for XRP and other altcoins to rally. According to Dark Defender, the Bitcoin dominance correction may happen between November 2024 and November 2025.

This period may lead to the beginning of an altcoin season. People may move their money into other assets such as XRP.

Technical Indicators Support Potential XRP Rally

Aside from historical trends, technical analysis is further supporting the call for an XRP bounce if Bitcoin dominance trends lower. The Relative Strength Index (RSI) is approaching the overbought zone, wherein it has previously topped in the past when measuring Bitcoin’s dominance.

Every time the RSI on Bitcoin has gotten to these points, a downfall has occurred which means that altcoins can now rise. The current Relative Strength Index (RSI) on Bitcoin Dominance is almost at its peak, and as Dark Defender commented, this has been a turning point in the past regarding dominance levels.

If Bitcoin dominance declines and that is the real case, it may be the beginning of another bullish period for XRP just as has been the case in the previous cycles. Consequently, Bitcoin dominance peaks are a good indicator of the future value of XRP.





Source link

Leave a Reply

Your email address will not be published. Required fields are marked *