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Ripple’s price reached its highest point at $0.63 on February 29th, resulting in a 30% increase for the month of February 2024. However, the declining dominance of Bitcoin could lead to even greater gains for leading altcoins in March.
Investors are expected to shift their capital towards altcoin markets, which could result in significant gains for Ripple-backed XRP in March 2024.
In February, Bitcoin dominated the crypto market with various price milestones and record-breaking ETF inflows. However, as the month came to a close, market trends indicated that investors were becoming more interested in other sectors of the cryptocurrency market.
TradingView’s Bitcoin Dominance (BTC.D) chart shows Bitcoin’s market capitalization as a percentage of the overall cryptocurrency market. This provides real-time insights into investors’ risk appetite and investment preferences.
Since Bitcoin’s price reached around $64,000 on February 28th, BTC.D has decreased from 55.2% to 54.3% as of March 1st.
During this time, while Bitcoin’s price declined to around $60,000, altcoin markets experienced a surge. As shown in the chart, the decrease in BTC.D coincided with a $175 billion inflow into the altcoin market, resulting in an 8.5% increase in the overall crypto market capitalization.
When Bitcoin’s dominance declines and the crypto market experiences a boom, it indicates that altcoins are becoming more significant. This rare market dynamic demonstrates that as the crypto bull market intensifies, investors are gaining confidence and allocating more capital towards altcoins.
In the past month, all altcoins in the top 10 rankings, including Ethereum (ETH), BNB, Solana (SOL), and Cardano (ADA), have reached new yearly peaks, except for XRP.
Currently, XRP is trading around the $0.60 mark. To reach its previous peak of $0.65, prices would need to surge by an additional 9%.
Recent trends in the derivatives markets show that speculative traders have become more bullish on XRP since Bitcoin dominance started to decline on February 28th.
Santiment’s funding rate trend measures the total fees paid by futures contract position holders across various trading platforms and exchanges. The funding rate increased from 0.04% to 0.10% between February 27th and March 1st.
Elevated values of favorable funding rates typically indicate that XRP long position holders are paying significant fees to short traders to keep their positions open.
The last time XRP’s funding rate exceeded 0.08% was in August 2023. Consistent and prolonged spikes in the funding rate occur when leveraged long traders are confident in short-term price increases and potential high profits.
If this bullish scenario unfolds, XRP’s price could potentially reach a new peak above $0.65 in 2024, aligning with the performance of other altcoins in the top 10 market valuation rankings.
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