XRP Price to Plunge $2? As Rising Bitcoin Dominance Could Crush XRP Bulls

XRP, a prominent cryptocurrency, recently experienced a remarkable surge, climbing by 335% within just one month. Despite this impressive gain, XRP is now confronting the possibility of a significant price drop. After achieving its annual peak of $2.85 on December 3, XRP has already faced a decline of nearly 18%.

Bitcoin Dominance: A Major Concern for XRP

According to crypto expert Pav Hundal, Bitcoin’s increasing dominance poses a substantial threat to XRP’s price stability. If Bitcoin dominance continues to grow, XRP’s value could plummet to $2. As capital flows back into Bitcoin, a substantial sell-off in XRP might occur, potentially erasing long positions.

Currently, Bitcoin dominance stands at 55.28%, having decreased slightly this week. However, Hundal warns that if it escalates to between 60% and 70%, the market may witness a significant shift as investors divert their funds from altcoins like XRP back into Bitcoin.

Despite XRP’s recent popularity among traders, with open interest reaching new heights, the surge in leveraged positions, coupled with the price retracement, could lead to substantial liquidations if the market continues its downward trajectory. Hundal notes that XRP long positions are still being added even as prices decline, suggesting the market might be approaching a “dangerous zone.”

The XRP/BTC ratio, which measures XRP’s strength compared to Bitcoin, currently stands at 0.00002375. This ratio has risen by 2.7% since December 5 and by an impressive 47% over the past month. Hundal suggests that a stable Bitcoin price could stabilize the market and boost trading activity.

Interested in XRP’s future? Check out our XRP price prediction to stay informed about potential trends and opportunities!

The Ripple Effect of Ripple’s Delay

The uncertainty surrounding XRP is further compounded by Ripple’s recent delay in launching its RLUSD stablecoin, raising concerns among investors. This delay caused XRP to lose its position as the third-largest cryptocurrency by market capitalization, falling behind USDT.

Are XRP Bulls in Trouble?

Currently, XRP is trading at $2.37, reflecting a slight price decline over the past 24 hours. A further 7% drop in price could result in approximately $104 million in XRP long positions being wiped out. XRP’s inability to break through the $2.50 resistance level is increasing pressure on the token, with its market cap dropping below $134 billion.

The next support level for XRP is near $2.20, with a potential further decline toward $2.00 if the bearish trend persists. However, if XRP can surpass the $2.50 resistance, it may experience a rise to $2.70 or even $3.00.