XRP Price Action, Why Bitcoin Dominance Charts Are Hidden Key?

A shift in market dynamics has raised questions about the utility of Bitcoin dominance charts in identifying altcoin opportunities.

XRP price current movement and historical parallel to Bitcoin indicate presence of a consistent trend. It is a new timing tool.

Bitcoin Dominance Shows Extended BTC Outperformance

In late 2024, Bitcoin dominance in the crypto market hit 70% of market share. That meant the market is dominated by just one asset, excluding stablecoins.

This indicator monitored the percentage of the market that Bitcoin held against other cryptocurrencies.

Notably, it has been used as an indicator by investors to evaluate wider market strength or risk appetite.

Since 2018, Bitcoin continued to outperform the majority of altcoins. XRP fell short of Bitcoin, recovering after its own 2017-2018 cycle peak.

XRP price against Bitcoin decreased by nearly 97% within the same time. The XRP/BTC pair touched a peak of 0.00023 in January 2018 and later dipped to the bottom of 0.00000674 in November 2024.

Although there were periods of gains, XRP price was still in a long-term dip relative to Bitcoin. Consequently, Bitcoin dominance was associated with a decline in the performance of most of its altcoins, especially in XRP.

XRP/BTC Forms a Double Bottom

More so, technical XRP/BTC chart analysis indicated that a reversal structure developed in late 2024. A double bottom chart was seen at a very low value of the pair in years, which suggested a possible change of momentum.

Investment analyst Benjamin Cowen observed this pattern and rotated capital into XRP. This decision came after favoring Bitcoin through its 2022 to 2024 upward trend, when BTC continued to outperform most of the market.

Bitcoin-to-XRP Rotation Seen as Tactical Move

Furthermore, Cowen emphasized the rotation strategy that implied a systematically organized way of dealing with market cycles.

He noted instead of owning one asset during long periods of bears, tracking relative superiority by watching Bitcoin dominance charts and price pair formats can give timing leverage.

This strategy, as per his data, gave his exposure to Bitcoin rally and positioned XRP price gain as it formed momentum against BTC.

However, certain analysts, such as GeoMetric, criticized the excessive use of Bitcoin dominance as a forecasting instrument. Conversely, Cowen defended the chart as essentially a market-wide temperature check.

He claimed that the ratio of price and the degree of dominance being equal could demonstrate the time when an altcoin, such as XRP, could turn in the opposite direction of Bitcoin.

His entry was based on investing in data by using the structure of the historical charts to determine shifts between top crypto assets.

XRP Price Forms Bullish Pennant

Additionally, according to a recent analysis by analyst EGRAG CRYPTO, XRP price was trading in a bull pennant structure.

This pattern that developed on the back of a strong bullish price movement is usually considered a continuation once the price overcomes the resistance line.

The analyst noted that as long as XRP price trades above the lower limit of $1.95, the structure will hold, and the targets would be breakouts at $2.21 and $2.40.

Furthermore, the bullish pennant is supported by historical trendlines, and the current chart setup mirrors previous phases of XRP strength. According to the chart, the $1.95 zone may be a confirmation level, with $2.40 positioned as the breakout target.

This setup emerged as XRP price continued to show relative strength after its recovery from 2024 lows. This further aligned with Cowen’s earlier analysis based on the XRP/BTC reversal.

The post XRP Price Action, Why Bitcoin Dominance Charts Are Hidden Key? appeared first on The Coin Republic.