Ripple (XRP) has been on the rise and has surged by 335% in just one month. The highest value of XRP was $2.85 on December 3, and its yearly gain was 268.03%. However, XRP has dropped nearly 18% since its annual peak on December 3, but traders remain optimistic about the token potential strong recovery.
Bitcoin Dominance Concerns
Crypto analyst Pav Hundal recently weighed in on the issue, noting that due to the current growth in Bitcoin’s dominance, XRP might be in trouble. Bitcoin’s dominance is still at 55.79%, slightly lower than earlier. According to Hundal, if this dominance goes up to 60-70%, there can be a flip as investors begin to divest from other altcoins, such as XRP, and pour their money into Bitcoin.
The recent increase in the price of XRP is of interest to traders and investors with increased open interest and leveraged positions. But, according to Hundal, this rise in trading volume and price consolidation may result in massive liquidations if the bearish momentum continues. He also observes that long positions in XRP are still open despite declining prices, which he says is the “one more dangerous zone.”
XRP/BTC Ratio
The XRP/BTC ratio, which compares XRP against Bitcoin, currently stands at 0.00002375. Although this ratio has risen by 2.7% since December 5th and jumped by 47% in the past month, Hundal believes stabilising Bitcoin’s price may stabilize the markets and increase trading volumes.
Hut 8’s Bold $500M Plan To Boost Bitcoin Holdings: ReportXRP is at the risk of a breakdown, but has a support at $2.20. In case of a further bearish trend, the cryptocurrency may fall to $2.00. However, if the price of XRP reclaims the $2.50 level as its resistance, it could see a price surge to $2.70 or $3.00.
As of press time, XRP is valued at $2.31, which has dropped 3.04% within the last day. As Hundal pointed out, if the token were to fall by another 7%, then about $104 million of long positions might be liquidated. The failure of XRP to overcome the $2.50 mark has put more pressure on the token, thus seeing its market capitalization dip below $134 billion.
