Crypto analyst Dark Defender has highlighted an important connection between Bitcoin dominance and the timing of XRP bull runs. According to Dark Defender’s analysis, XRP tends to enter its bull run phase when Bitcoin dominance reaches a peak and then starts to decline. This pattern was observed during XRP’s previous bull runs in 2017 and 2021.
In 2017, Bitcoin dominance reached a high of 96.25% in February, which put pressure on the altcoin market, including XRP. However, as Bitcoin’s dominance began to decrease in March, XRP seized the opportunity and experienced a massive rally, surging by 284% in that month alone. Over the following months, Bitcoin dominance continued to drop, and XRP reached its all-time high of $3.31 in January 2018 when Bitcoin dominance had plummeted to 35.41%.
A similar inverse relationship between Bitcoin dominance and XRP’s performance was observed in 2021. In January 2021, Bitcoin dominance spiked to 73.63%, coinciding with a low point in XRP’s price at $0.2082. However, as Bitcoin’s dominance started to decline that same month, XRP quickly rebounded and closed January with a gain of over 125%. The rally continued as Bitcoin dominance further collapsed, dropping to 49.19% by April 2021, and XRP reached a high of $1.96 in the same month.
Currently, Dark Defender’s chart indicates that Bitcoin dominance is again approaching a peak, recently reaching 59.75%. Market veteran Michaël van de Poppe has also identified this spike in Bitcoin dominance. Meanwhile, XRP has been underperforming, similar to the conditions observed at the beginning of previous bull runs. Market analysts believe that if Bitcoin dominance starts to fall in the coming months, it could create an ideal environment for altcoins like XRP to rally.
Dark Defender suggests that the potential correction in Bitcoin dominance could occur between November 2024 and November 2025. This decline could trigger the altcoin season, as capital flows out of Bitcoin and into altcoins, leading to significant rallies in non-Bitcoin assets like XRP. Additionally, historical patterns show that peaks in Bitcoin dominance often align with tops in the Relative Strength Index (RSI) of BTC.D, indicating overbought conditions. Each time this pattern has occurred in the past, Bitcoin dominance has declined shortly afterward. Currently, the RSI is approaching a peak on the chart, suggesting that if Bitcoin dominance retraces, it could lead to a new cycle of price increase for XRP.
It is important to note that this content is informational and should not be considered financial advice. The views expressed in this article are the author’s personal opinions and do not reflect the opinion of The Crypto Basic. Readers are encouraged to conduct thorough research before making any investment decisions, and The Crypto Basic is not responsible for any financial losses.