In our last post, we announced the pull back in the dominance percentage of Bitcoin. Now, we obtained an instant investment in the percentage of the domain that makes made the dominance fall to 68.4% at press time while Bitcoin is price $7,100.
This would mean bullishness for some altcoins, and an upward move against BTC. However, the fact that the domain is going down slowly must be taken into account that it does not mean that all altcoins will rise in their positions against Bitcoin.
For now BTC has begun to confirm its reversible trend as it happened on November 23, after leaving the resistance zone located between 69.7% – 70.7%.
The reasons behind the decline of this important metric for the leading cryptocurrency lies in the fact that BTC is yet to managed to break strong resistance between the USD 7,600- USD 7,800 zone and is now fighting against the backline of 7k.
At the time of the edition, Bitcoin is trading at a spot price of USD 7,130.97 (-0.85%) and is at the top of a bullish pennant that has not yet broken, and there are expectation that a break below strong support area located at the limit of 7k could play out in the next few hours.
However, the RSI still remains at purchase levels, so the outlook is still uncertain for BTC. Any break above the current zone could trigger a bullish rally again towards the strong resistance zone between USD 7,600 – USD 7,800.
XRP the Big Beneficiary?
Among the most important altcoins at the top of the table, Ripple’s XRP token could be one of the biggest beneficiaries of the decline in Bitcoin’s dominance. At the time of writing, the XRP token is valued at a spot price of USD 0.1926 with a slight correction of -0.85% in the last 24 hours.
The third most important cryptocurrency in the ecosystem has tried on two occasions to return to the USD 0.2138 area that it lost last November 23 when it started a descending channel that took it to the USD 0.1733 zone. However, XRP benefited from BTC bullish rally on December 18 that allowed it to reach up to 61.8% Fibonacci bullish levels (USD 0.020).
However, the token made a second setback that allowed it to create stronger support at USD 0.1829 levels (Fib 23.6%) and is currently generating a new Elliot corrective wave that has allowed it to reach 61.8% Fibonacci bullish levels again in its first amplitude.
If the BTC domain continues to decline and not beyond the strong support zone, then it will be possible to think of an advance of XRP towards the bullish zone above USD 0.20 in the short term. This would mean an advance of + 3.57% in relation to the current position.
For the 4H graph of the XRP \ USD pair, the outlook is optimistic for the Ripple token.
Bollinger Bands are closing the separation between the bands, a symptom of volatility reduction in the price of the token shown above. Now the XRP token is above average BB support at USD 0.1899 levels.
Aroon is starting to show bullish signs with its green signal rapidly rising to the top of the chart.
RSI for its part remains in the balance of buy-sell, which suggests that the token expects to leave its current break.