In February 2024, Ripple’s XRP surged to a peak of $0.63, marking a 30% gain for the month. Despite this, declining Bitcoin dominance signals a potential for leading altcoins like XRP to see even more substantial gains in March.
Investors are increasingly turning their attention away from Bitcoin dominance as altcoins gain traction in the crypto market. Bitcoin’s dominance, as indicated by TradingView’s Bitcoin Dominance (BTC.D) chart, has slipped from 55.2% to 54.3% as of March 1, following its price retracement towards $60,000. Meanwhile, altcoin markets have seen a surge, with a $175 billion inflow resulting in an 8.5% increase in the overall crypto market capitalization.
The decline in Bitcoin dominance coupled with a boom in the altcoin market suggests that investors are gaining confidence in the crypto bull market and allocating more capital towards altcoins.
In this shifting landscape, XRP stands out as bullish traders have significantly increased leverage by 120% over three days. This surge in bullish sentiment coincides with a decline in Bitcoin dominance, indicating a growing appetite for altcoins.
Recent trends in derivatives markets show that speculative traders are betting heavily on XRP, with Santiment’s funding rate trend indicating a spike from 0.04% to 0.10% between February 27 and March 1. Elevated funding rates suggest that long position holders are paying substantial fees to keep their positions open, indicating confidence in XRP’s short-term price potential.
The last time XRP’s funding rate saw such significant spikes was in August 2023, indicating a sustained period of bullish sentiment among leveraged long traders.
If this trend persists, XRP’s price could potentially soar above its 2024 peak of $0.65, aligning with the performance of other top 10 altcoins in the market. As investors diversify their portfolios beyond Bitcoin, altcoins like XRP are poised to capitalize on the growing bullish sentiment in the crypto market.
Powered by Crypto Expert BD
Follow us on Twitter: https://x.com/CryptoExpert_BD
Join our Telegram channel: https://t.me/CryptoExpert_BD
