Over the past month, Bitcoin's dominance (BTC Dominance Index, abbreviated as BTC.D) has dropped 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 has more dominance; 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 a bull market peak, and whenever this happens, the market welcomes a wave of substantial capital redistribution — funds leaving Bitcoin and pouring into the altcoin market.
Bitcoin's dominance has currently broken below the support trend line it has held 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 be further diluted, and altcoins may welcome more opportunities.
Ethereum is preparing to surge to 'this level'
And this time, one of the main characters in the decline of BTC.D is undoubtedly the king of altcoins — Ethereum ($ETH). According to CoinGecko data, Ethereum ($ETH) has risen 10% in the past 7 days, reaching 3,620 USD at the time of writing.
Ethereum has currently formed a typical bullish pattern on the monthly chart — an ascending triangle, a technical structure formed by the support line below the channel and horizontal resistance level, accumulating upward momentum as price fluctuations compress.
Image source: XETH price chart
If Ethereum can break through the key resistance point of 4,000 USD, it will become an important price catalyst, and the mid-term target may even point directly to 8,000 USD.
3,400 USD is currently an important support level that can provide cushioning during pullbacks. If this support level is lost, it may trigger a short-term adjustment; however, the overall market sentiment towards Ethereum remains bullish.
XRP's market cap returns to third place
Following Trump's election as the new president of the United States, due to the emergence of multiple bullish and unconfirmed news, Ripple ($XRP) is experiencing astonishing gains. As of today (12/2), it has not only soared past 2 USD, but its total market capitalization has also reached 140 billion USD, surpassing the well-known stablecoin Tether ($USDT), reclaiming the third position in the global cryptocurrency market capitalization ranking.
Data from cryptocurrency ranking site CoinGecko shows that Ripple ($XRP) has skyrocketed by 376% in just one month, with strong performance driven by multiple bullish factors.
First, in the area of ETF applications, the asset management company 21Shares submitted Ripple ETF application documents in early November this year, and the market expects the U.S. Securities and Exchange Commission (SEC) may approve these applications under the new government leadership.
In terms of legal litigation, Ripple, which has been in a lawsuit with the SEC for many years, is welcoming a turning point in 2023, as the judge ruled that Ripple’s token is not a security, clearing significant legal obstacles.
Under Trump's new government, the SEC may withdraw its lawsuit against Ripple.
In addition, Ripple is actively expanding its business and plans to launch a stablecoin named $RLUSD, with the New York Department of Financial Services (NYDFS) expected to approve it before December 4.
There are also several rumors seen as bullish news, such as Ripple’s CEO meeting with Trump, and rumors that Musk will invest heavily in Ripple and its token, but none have been confirmed yet.
Ripple ($XRP) carries leverage risks; be cautious of short-term pullbacks.
Although Ripple ($XRP) seems to have a bright future, vigilance must still be maintained.
In the past 24 hours, the open interest of Ripple's derivatives has surged by 37%, reaching 4 billion USD. Similar dramatic fluctuations in Ripple's open interest have previously led to pullbacks of up to 17%, and everyone must remain vigilant and pay attention to risk management at all times.
Due to Trump’s election, SEC reorganization, and other bullish news, Ripple has become one of the most prominent focuses of this bull market. However, the surge in open interest also reminds investors that market leverage risks are rising, and a cautious attitude is essential.
