A crypto analyst said the market “could be approaching euphoria territory” with the significant amount of XRP longs “being reloaded” as the price retraces.
XRP has fallen almost 18% since hitting its yearly high on Dec. 3, but traders still hope for a strong rebound. Their optimism may be tested if Bitcoin dominance continues to increase, a crypto analyst said.
“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,” crypto exchange Swyftx lead analyst Pav Hundal told Cointelegraph.
At the time of publication, Bitcoin (BTC) dominance was 55.30%, down 5% over the past week, as per TradingView data. Some traders speculate that Bitcoin dominance may peak in the 60% to 70% range before the rotation of capital into altcoins begins.
