In the past month, Bitcoin's dominance (BTC Dominance Index, abbreviated as BTC.D) has fallen from 60% to 56%. This indicator represents the proportion of Bitcoin's market capitalization to the overall cryptocurrency market capitalization. When BTC.D rises, Bitcoin is more dominant; when BTC.D declines, funds may be flowing into other cryptocurrencies.
This number may seem insignificant, but it has crucial market implications. According to historical experience, BTC.D often turns downward after the peak of a bull market. Whenever this happens, the market undergoes a significant reallocation of funds—money flows out of Bitcoin and into the altcoin market.
Currently, Bitcoin's dominance has fallen below the support trend line it has maintained for years. In the past month, the dominance of the altcoin market has surged from 28.1% to 31.5%. If BTC.D continues to decline, Bitcoin's market influence will be further diluted, and altcoins may see more opportunities.
Ethereum is ready to surge to 'this level'.
One of the main characters in the recent decline of BTC.D is undoubtedly the king of altcoins—Ethereum ($ETH). According to CoinGecko data, Ethereum ($ETH) has risen by 10% in the past 7 days, reaching $3,620 at the time of writing.
Currently, Ethereum has formed a typical bullish pattern on the monthly chart—an ascending triangle. This technical structure is formed by the support line at the bottom of the channel and the horizontal resistance level, accumulating upward momentum while price fluctuations compress.
Image source: XETH price chart
If Ethereum can break through the key resistance point of $4,000, it will become an important price catalyst, with a medium-term target possibly even reaching $8,000.
$3,400 is currently an important support level that can provide a buffer during pullbacks. If this support level is lost, it may trigger a short-term pullback. However, overall market sentiment for Ethereum remains strong.
XRP's market capitalization returns to third place.
After Trump was elected as the new President of the United States, due to multiple positive and unverified news, Ripple ($XRP) is experiencing an astonishing increase. As of today (12/2), it has not only surged past $2, but its total market value has also reached $140 billion, overtaking the well-known stablecoin Tether ($USDT) and reclaiming the third position in the global cryptocurrency market capitalization ranking.
Data from the cryptocurrency ranking website CoinGecko shows that Ripple ($XRP) has surged by 376% in just one month, with strong performance attributed to several positive factors.
First, regarding ETF applications, the asset management company 21Shares submitted the application documents for a Ripple ETF in early November this year. The market expects that the U.S. Securities and Exchange Commission (SEC) may approve these applications under the leadership of the new government.
In terms of legal litigation, Ripple, which has been in a lawsuit with the SEC for many years, has reached a turning point in 2023, as the judge ruled that Ripple is not a security, clearing significant legal hurdles.
Under Trump's new government, the SEC may withdraw the lawsuit against Ripple.
In addition, Ripple is actively expanding its business and plans to launch a stablecoin called $RLUSD, which the New York Department of Financial Services (NYDFS) is expected to approve before December 4.
There are also several rumors considered positive news, such as Ripple's CEO meeting with Trump and rumors that Musk will heavily invest in Ripple and Ripple's tokens, but these have yet to be confirmed.
Ripple ($XRP) has leverage risks; be cautious of short-term pullbacks.
Although the outlook for Ripple ($XRP) seems bright, it remains cautious.
In the past 24 hours, the open interest for Ripple's derivatives has surged by 37%, reaching $4 billion. Similar drastic fluctuations in Ripple's open interest have previously led to pullbacks as high as 17%. Everyone should remain vigilant and pay attention to risk management.
Due to Trump's election, SEC restructuring, and other positive news, Ripple has become one of the most notable focuses of this bull market. However, the surge in open interest also reminds investors that market leverage risks are rising, and it is essential to maintain a cautious attitude.
