The correlation between Bitcoin dominance and XRP bull runs has caught the attention of crypto analyst Dark Defender. According to data, XRP tends to enter its bull run phase when Bitcoin dominance reaches its peak and starts to decline. Dark Defender’s latest analysis confirms that this pattern was observed during XRP’s previous bull runs in 2017 and 2021.
In 2017, Bitcoin dominance reached a staggering 96.25% in February, causing pressure on the altcoin market, including XRP. However, as Bitcoin dominance began to ease in March, XRP took advantage of the opportunity. With Bitcoin losing market share, XRP experienced a massive rally, surging by 284% in that month alone. Over the next few months, as Bitcoin dominance continued to drop, XRP reached its all-time high of $3.31 in January 2018, while Bitcoin dominance plummeted to 35.41%.
Similarly, in 2021, Bitcoin dominance spiked to 73.63% in January, coinciding with a low point in XRP’s price. But as Bitcoin dominance started to decline that same month, XRP rebounded swiftly, closing January with a gain of over 125%. The rally continued as Bitcoin dominance further collapsed, dropping to 49.19% by April. Despite the ongoing Ripple v. SEC legal battle, XRP climbed to a high of $1.96 in the same month.
Dark Defender’s chart indicates that Bitcoin dominance is once again reaching a peak, currently standing at 59.75%. Market veteran Michaël van de Poppe has also noticed this spike in Bitcoin dominance. Meanwhile, XRP has been underperforming, following the conditions seen 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.
According to Dark Defender, the potential correction in Bitcoin dominance could happen between November 2024 and November 2025, triggering the altcoin season. This decline would result in capital flowing out of Bitcoin and into altcoins, leading to significant rallies in non-Bitcoin assets such as XRP. Additionally, the Relative Strength Index (RSI) shows that tops in the BTC.D RSI often align with peaks in Bitcoin dominance, indicating overbought conditions. Every time this pattern has occurred in the past, Bitcoin dominance has declined shortly after. On the current chart, the RSI is approaching a peak again. If Bitcoin dominance retraces, it could lead to a new cycle of XRP price increase.
It’s important to note that this article is for informational purposes only and should not be considered financial advice. The views expressed are the author’s personal opinions and do not reflect the opinion of The Crypto Basic. Readers are advised to conduct thorough research before making any investment decisions, and The Crypto Basic is not responsible for any financial losses incurred.