EGRAG CRYPTO (@egragcrypto), a well-respected crypto analyst, recently shared his thoughts on XRP dominance, specifically its potential to surge significantly after a retest of historical lows.
XRP dominance is a metric representing XRP’s market capitalization relative to the total cryptocurrency market capitalization. EGRAG CRYPTO highlights historical trends in XRP dominance, pointing to instances where the cryptocurrency’s market share dipped significantly before substantial growth.
In 2017, XRP dominance fell below 1.19% before a significant rise that culminated in a January 2018 all-time high of $3.84 and dominance exceeding 30%. A similar pattern emerged in 2021, with XRP retesting the 1.19% level before a price increase to $1.96 and dominance reaching around 3.6%.
The analyst shows that XRP is currently undergoing another retest of the 1.19% dominance level. Based on historical precedents, EGRAG CRYPTO suggests the possibility of another surge following this retest. Other analysts have set lofty targets for XRP based on different historical patterns.
EGRAG CRYPTO proposes a range between the Fib 1.272 level (9.65% dominance) and the Fib 1.618 level (17.39% dominance) as potential targets for this surge. Notably, he refers to this range as the “Equilibrium level.”
The Fibonacci retracement is a popular technical analysis tool used by traders and analysts. It identifies potential support and resistance levels based on historical price movements.
EGRAG CRYPTO suggests that the Fib 1.618 level (around 17.39% dominance) might represent a point of balance or stability for XRP’s market share. Reaching this level could signify a period of relative stability or a potential turning point for XRP dominance.
EGRAG CRYPTO’s analysis extends beyond a potential surge in XRP dominance. He posits that XRP could surpass Bitcoin in terms of dominance during this cycle. In 2017, XRP’s dominance surpassed Ethereum’s dominance.
However, the current market landscape for Bitcoin and XRP is different from 2017. EGRAG CRYPTO suggests that this cycle might witness a more dramatic shift, with XRP dominance potentially exceeding even BTC’s dominance.
By drawing on historical data and technical analysis tools, EGRAG CRYPTO suggests the potential for a renewed surge in XRP’s market share. However, investors and traders should approach this analysis cautiously, recognizing the inherent uncertainty of the cryptocurrency market.
Despite this, many analysts are bullish on XRP, as it recently flashed a significant bullish pattern. EGRAG CRYPTO stated that doubters will doubt and haters will hate, but believers will keep believing in XRP.
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