Crypto markets often signal major shifts before price headlines catch up. While traders debate short-term candles, dominance charts quietly reveal where capital intends to flow next. XRP’s market cap dominance has compressed for months, reflecting sustained relative weakness. Now, compression appears to be reaching a breaking point.
Crypto analyst Bird recently shared a TradingView chart arguing that XRP dominance could soon accelerate sharply. He identifies an ending descending wedge pattern that is nearing completion. With dominance sitting around 3.8%, he believes the structure favors a bullish breakout that could send XRP’s market share significantly higher in the coming weeks.
Descending Wedge Signals Momentum Shift
A descending wedge forms when price or dominance prints lower highs and lower lows within converging trendlines. Unlike a standard downtrend channel, this formation often signals weakening bearish pressure. As volatility tightens toward the apex, markets typically prepare for expansion.
XRP dominance could go parabolic in the next few weeks.
The wedge is coming to an end. pic.twitter.com/rcL02yuANr
— Bird (@Bird_XRPL) February 24, 2026
Bird’s analysis suggests that XRP dominance has almost reached the wedge’s terminal point. When such structures resolve to the upside, breakouts often occur with force. A dominance breakout would indicate that XRP is outperforming much of the broader crypto market, even if total market capitalization remains stable.
Extended Monthly Weakness Nears Exhaustion
Bird, per a recent report, pointed to XRP’s recent streak of monthly red candles. The asset has printed nearly five consecutive red months. Historically, XRP recorded six straight red monthly candles in 2014 before reversing direction. Based on that precedent, Bird argues that probability favors a green monthly close rather than another extended decline.
Markets rarely sustain prolonged one-sided pressure indefinitely. When selling momentum fades, even moderate buying demand can trigger sharp reversals. If March closes green, it could reinforce the case for a dominance breakout.
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Why Dominance Breakouts Matter
Dominance measures capital rotation. When XRP dominance rises, investors allocate a larger share of total crypto capital to XRP compared to other digital assets. That shift often attracts momentum traders, increases liquidity, and amplifies volatility.
A parabolic dominance move does not require the entire market to rally. XRP can gain dominance if it rises faster than peers or declines more slowly during broader market weakness. Either scenario reflects relative strength.
The Critical Weeks Ahead
Broader market conditions will still influence the outcome. Bitcoin’s stability and macro liquidity trends will shape overall sentiment. However, technical structures on the dominance chart now suggest that compression has reached its late stage.
If XRP dominance breaks above the wedge’s upper boundary with conviction, capital rotation could accelerate quickly. After months of relative underperformance, XRP may be positioning for a leadership phase within the crypto market.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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