XRP dominance, the metric representing XRP’s market share compared to the total cryptocurrency market capitalization, has experienced a significant decline since its July 2023 surge. However, this downtrend might be about to turn around, as popular crypto analyst EGRAG CRYPTO (@egragcrypto) believes a change is coming.
EGRAG CRYPTO highlights a near 70% drop in XRP dominance since its July 2023 peak. This decline can be attributed to several factors, including:
The Rise of Alternative Cryptocurrencies: The cryptocurrency market is constantly evolving, with new projects emerging and established ones gaining traction. This competition can lead to a redistribution of market share, potentially causing dominant players like XRP to lose some ground. Stellar (XLM), a major competitor to XRP, recently launched smart contracts on its mainnet, putting it a step ahead of XRP and increasing the competition in the digital asset space.
Market Fluctuations: The overall cryptocurrency market is known for its volatility. Periods of market downturns can disproportionately affect specific cryptocurrencies, potentially leading to a decrease in their dominance metrics.
EGRAG CRYPTO suggests that XRP dominance might experience a further decline, potentially reaching the yellow box he tags “The Shake Out” zone on his dominance chart. This zone bottoms out at 0.73% dominance, which many will interpret as a negative sign. However, the analyst believes it could be a final shakeout before a potential price increase.
He reveals that he will begin his Dollar-sell Average strategy once XRP reaches this level, anticipating the reversal. This strategy involves investing a fixed amount of money into a particular asset at regular intervals, regardless of the asset’s price.
By potentially entering the market during a period of low dominance, investors following this strategy could accumulate XRP at a potentially favorable price point and invest continually as it grows.
EGRAG CRYPTO emphasizes the significance of a statement by Brad Garlinghouse, CEO of Ripple, the company that majorly distributes XRP.
Garlinghouse suggested a scenario where XRP could capture 10% of the total cryptocurrency market capitalization, estimated at around $5 trillion. EGRAG CRYPTO recently referenced this when predicting the trajectory of the entire crypto market. Based on this hypothetical scenario, he suggests that XRP’s price could reach around $9-$10.
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