Ripple's potential surge in March 2024 amid declining Bitcoin dominance. XRP poised for gains as altcoins attract investors.
Ripple’s value surged to $0.63 on February 29, marking a 30% increase for February 2024. However, a decline in Bitcoin dominance suggests that major alternative cryptocurrencies could see even more substantial gains in March.
With backing from Ripple, XRP is poised to experience notable growth in March 2024 as investors pivot towards alternative cryptocurrency markets.
Bitcoin's Dominance Decreases as Altcoins Gain Traction
Bitcoin took the spotlight in February with numerous price milestones and unprecedented ETF inflows. Nevertheless, as the month concluded, market dynamics indicated a growing focus from investors on other segments of the cryptocurrency space.
The Bitcoin Dominance (BTC.D) chart on TradingView illustrates Bitcoin's market capitalization as a percentage of the total cryptocurrency market, offering insights into investors' risk appetite and investment preferences. Following Bitcoin's surge to nearly $64,000 on February 28, BTC.D has dipped from 55.2% to 54.3% as of March 1.
While Bitcoin retraced towards $60,000, altcoin markets experienced significant growth during this intense three-day period. The decline in BTC.D coincided with a $175 billion influx into the altcoin market, resulting in an 8.5% surge in the overall cryptocurrency market capitalization.
When the decline in Bitcoin's dominance aligns with a surge in the cryptocurrency market, it signals a shift towards altcoins. This unique market dynamic demonstrates investors' growing confidence and increased capital allocation towards the altcoin market as the cryptocurrency bull market gains momentum.
Bullish Sentiment Surges Among XRP Traders
Except for XRP, each altcoin in the top 10 rankings, such as Ethereum (ETH), BNB, Solana (SOL), and Cardano (ADA), has reached new yearly highs in the past month.
Currently trading around the $0.60 mark, XRP needs to climb by an additional 9% to reclaim its $0.65 peak last observed on January 2.
Recent trends in derivatives markets indicate a rise in bullish positions on XRP since the decline in Bitcoin dominance on February 28.
Santiment’s funding rate trend aggregates fees paid by futures contract holders across various trading platforms and exchanges. The funding rate surged from 0.04% to 0.10% between February 27 and March 1.
Elevated values of favorable funding rates typically suggest that holders of long positions on XRP are paying substantial fees to short traders to maintain their positions.
The last time XRP's funding rate soared above 0.08% was in August 2023. Consistent and prolonged spikes in the funding rate occur when leveraged long traders are confident in short-term price increases, anticipating significant profits.
If this bullish trend persists, XRP's price could surge to a new 2024 peak above $0.65, in line with other top 10 altcoins by market valuation.