With the cryptocurrency market gaining momentum, XRP has displayed remarkable strength, reaching a price high of $2.31 and witnessing increased on-chain activity.
The ongoing discourse on whether XRP has the potential to rival Bitcoin’s dominance in this market cycle is gaining traction, fueled by optimistic price movements and heightened market engagement.
The question remains: Can XRP truly surpass Bitcoin, or is this just speculative enthusiasm?
Is a XRP Takeover of Bitcoin Plausible?
The recent surge in XRP’s value has been remarkable, as the cryptocurrency broke through several resistance levels to reach $2.31.
Notably, the bullish crossover of the 200-day moving average (MA) at $0.62 and the 50-day MA at $0.87 indicates a consistent upward trend.
The MACD (Moving Average Convergence Divergence) confirms this positive momentum, with its line comfortably above the signal line at 0.36.
Nevertheless, the Relative Strength Index (RSI) currently stands at 93, signaling that XRP may be overbought, thereby suggesting a probable short-term correction before any further upward movement.
Analysis by CryptoCrypto also reveals a correlation coefficient (CC) of 0.66 between XRP/USD and Bitcoin/USD, highlighting a significant connection between the two cryptocurrencies.
While XRP and Bitcoin are currently moving in tandem, the divergence in their momentum suggests a potential uncoupling, a prerequisite for a potential shift in dominance from Bitcoin to XRP.
Bitcoin’s Supremacy and Transaction Volumes
CryptoCrypto’s examination of data from CoinMarketCap indicates that Bitcoin’s dominance has dropped from 58.9% to 55.7% in the last month, indicating a resurgence of altcoins led by XRP.
During bullish cycles, Bitcoin’s dominance typically wanes as liquidity flows towards altcoins, paving the way for projects like XRP to gain a larger market share.
Despite XRP’s market share surge, Bitcoin still commands significantly higher transaction volumes. While XRP’s transaction volume peaked at $8.8 billion on December 1st, it fell short of Bitcoin’s $13.25 billion mark. Presently, Bitcoin’s transaction volume stands at $7.95 billion, compared to XRP’s $2.42 billion.
Growing Network Activity of XRP
Despite Bitcoin’s superiority in transaction volume, XRP has witnessed a substantial surge in on-chain activity. The rise in daily active addresses on the XRP Ledger indicates a growing level of engagement and utilization of the network.
The overall market sentiment towards XRP appears optimistic, with a noticeable uptick in social media discussions and mentions. However, for XRP to truly challenge Bitcoin’s supremacy, these metrics will need to demonstrate further increases and sustain the momentum. While XRP stands as a prominent contender, Bitcoin remains the reigning champion.