XRP price has dropped 18% from its $2.75 peak earlier this week as Bitcoin makes a move to $104,000, setting an eye on 60% market dominance.
By Bhushan Akolkar
Edited by Julia Sakovich
Updated
3 mins read
Following a mega rally all the way to $2.75 earlier this week, XRP price XRP $3.14 24h volatility: 2.6% Market cap: $181.28 B Vol. 24h: $21.08 B faces some selling pressure and could face a major drop if Bitcoin market dominance expands. From the peak on December 3, XRP is already down 18% and is currently trading at $2.28 with a market cap of $130.42 billion. Also, the daily trading volume has dropped 50$ to $13.75 billion.
On the other hand, Bitcoin price BTC $103 575 24h volatility: 2.4% Market cap: $2.05 T Vol. 24h: $147.42 B rally to $104K this week has helped the asset extend its market dominance. Currently, BTC commands 55% market dominance in the $3.5 trillion crypto market. However, some market analysts believe that this number could extend further to 60-70%.
Only after that, the capital rotation to altcoins would begin triggering the altseason. This could pose a major challenge to recently performing altcoins like XRP. Pav Hundal, the lead analyst at crypto exchange Swyftx noted:
“The real danger right now for highly leveraged XRP bulls is that Bitcoin dominance increases again. A rotation from XRP to Bitcoin would very likely lead to a bloodbath of liquidations. We’ve seen a lot of quick twitch buying by retail over the last few weeks, and open interest is now close to double the levels we saw in 2021”.
In the last 24 hours, the XRP price has seen a sharp 5.32% pullback with open interest dropping 6% to $3.51 billion. Also, the long liquidations for XRP have surged to $32 million, per the CoinGlass data. Hundal said:
“It’s starting to look like the market could be approaching euphoria territory.”
Crypto analysts have outlined two possible corrective wave patterns for XRP, both rooted in key Fibonacci retracement levels. These scenarios could define the next price movement and offer critical support zones for traders to monitor, as per Chris McCrypto.
Courtesy: Chris McCrypto
On the other hand, the correction for XRP could be less pronounced in the case that Bitcoin stabilizes. As of press time, BTC price is seeing a 4.7% drop falling under $100K levels, all the way to $98,000. At this point, BTC is finding common ground after a drop to $93,000 earlier today.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
