Over the past month, Bitcoin's dominance (BTC Dominance Index, abbreviated as BTC.D) has fallen from 60% to 56%. This index represents the proportion of Bitcoin's market capitalization relative to the overall crypto market. 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 critical market implications. Based on historical experiences, BTC.D often turns downward after peaks in bull markets. Whenever this happens, the market undergoes a significant capital reallocation - money flows out of Bitcoin and into the altcoin market.
Bitcoin's dominance has fallen below a support trend line that has stood for many years. Over the past month, the dominance of altcoins has surged from 28.1% to 31.5%. If BTC.D continues to decline, Bitcoin's market influence will further dilute, providing more opportunities for altcoins.
Ethereum is ready to surge to 'this level.'
One of the key players in the capital flow during this decline in 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.
Ethereum has formed a typical bullish pattern on the monthly chart - an ascending triangle. This technical structure is formed by a support line below the channel and a horizontal resistance level, accumulating upward momentum while the price fluctuations compress.
Image source: XETH price chart.
If Ethereum can break through the key resistance level of $4,000, it will become an important price catalyst, with mid-term targets potentially reaching $8,000.
Currently, $3,400 is an important support level that can provide a buffer during pullbacks. If this support level is breached, it may trigger a short-term correction; however, the overall market sentiment towards Ethereum remains strong.
XRP's market capitalization returns to third.
After Trump's election as the new president of the United States, Ripple ($XRP) is experiencing astonishing gains due to multiple bullish and unconfirmed news. As of today (12/2), it not only surged past $2, but its total market capitalization also reached $140 billion, surpassing the well-known stablecoin Tether ($USDT) to reclaim the third position in the global cryptocurrency market capitalization rankings.
Data from the cryptocurrency ranking site CoinGecko shows that Ripple ($XRP) has skyrocketed by 376% in just one month, driven by several bullish factors.
First, regarding ETF applications, the asset management company 21Shares submitted an ETF application for Ripple's token earlier this November, and the market expects the SEC to possibly approve these applications under the new government leadership.
In terms of legal litigation, Ripple, which has been in a lawsuit with the SEC for years, reached a turning point in 2023 when a judge ruled that Ripple's token is not a security, clearing significant legal hurdles.
Under Trump's new administration, the SEC may withdraw its lawsuit against Ripple.
Additionally, Ripple is actively expanding its business and plans to launch a stablecoin called $RLUSD, with the New York Department of Financial Services (NYDFS) expected to approve it by December 4.
There are also several rumors considered bullish, such as the Ripple CEO meeting with Trump and the speculation that Musk will invest heavily in Ripple and its token; however, these have yet to be confirmed.
Ripple ($XRP) carries leverage risk; be cautious of short-term pullbacks.
Although the outlook for Ripple ($XRP) seems bright, caution is still advised.
In the past 24 hours, the open interest in Ripple's derivatives has surged by 37% to $4 billion. Similar drastic fluctuations in Ripple's open interest have previously led to pullbacks of up to 17%, so everyone should remain vigilant and pay attention to risk management.
Due to Trump's election, SEC restructuring, and other bullish news, Ripple has become one of the most notable focuses of this bull market. However, the surge in open interest also reminds investors that the market's leverage risk is rising, and it is essential to maintain a cautious attitude.
