XRP Price Pump Could Still Be in the Works as Bitcoin Dominance Position Declines

An analysis from market watcher Dom suggests the true XRP price pump could still be in the works, citing current Bitcoin dominance position.

XRP’s recent recovery, which has seen its price climb to $2.45 in January 2025, has triggered optimism. Market analysts such as Dom have pointed to Bitcoin dominance (BTC.D) as a factor that could determine XRP price path in the coming months.

Bitcoin dominance, a metric representing Bitcoin’s market share relative to the entire crypto market, has recently declined. It dropped to 56.93% from a high of 59.92% on Dec. 20, 2024.

XRP Price Rally Still Early

Historically, massive drops in BTC.D have triggered altcoin season, a period when capital flows from Bitcoin into altcoins like XRP. Dom, a notable crypto analyst, has repeatedly discussed this relationship in his market assessments.

In the latest update, Dom observed that in previous market cycles, XRP experienced exponential gains whenever BTC.D witnessed substantial declines. During the last two cycles, Bitcoin dominance fell by around 30%, coinciding with XRP price surges of over 1,000%.

UPDATE on my most popular post ever

Any time $XRP has seen a large pump, it was when $BTC.D was tanking

The last TWO cycles, $BTC.D dropped exactly 30% while $XRP rose over 1000%

So far, BTC.D has ONLY dropped 5% ‼️

While I'm unsure we see the same -30%, the next leg up… https://t.co/0i8REdvL0h pic.twitter.com/jmW739nbgL

— Dom (@traderview2) January 3, 2025

However, in the current market cycle, BTC.D has only dropped by about 5%, suggesting that the most significant moves for XRP and other altcoins might still be ahead. Despite this, XRP has increased by nearly 500% since early November.

According to Dom, the current XRP price rally might be a precursor to a larger move. He speculated that the present gains could come from new capital entering the market rather than a shift from Bitcoin into altcoins.

This trend prepares the pathway for an even more substantial rally once Bitcoin dominance undergoes a more pronounced decline.

Altcoin Season on the Horizon

For context, XRP’s resurgence began in November 2024 after breaking above the $1 mark for the first time in three years. At the time, Dom described the move as unusual because it occurred without a noticeable drop in Bitcoin dominance, which typically accompanies XRP price surges.

Interestingly, when XRP rallied to surpass the $1-mark, Bitcoin dominance remained high at around 58%. Dom noted that this strange occurrence could indicate either a temporary price movement or the early stages of a broader market rally.

Now, as Bitcoin dominance continues its gradual decline, market participants have become optimistic about the arrival of altcoin season. Notably, altcoin seasons typically lead to Bitcoin’s relative underperformance and capital inflows into other crypto assets.

For instance, Michaël van de Poppe, another prominent market veteran, has persistently emphasized the imminent arrival of the altcoin season. He attributed the recent strength in the altcoin market to the fading of FUD around regulatory issues concerning USDT and MiCA.

The #Altcoin markets are surging after the FUD surrounding USDT and MiCa fades way.

It's the start of the bull cycle.

The big upwards return for risk-on assets within the crypto landscape.

— Michaël van de Poppe (@CryptoMichNL) January 3, 2025

Van de Poppe described the current market phase as the beginning of a new crypto bull cycle. He stressed that this period presents exceptional potential for returns, particularly for altcoins like XRP, which have endured an extended bear market. At press time, XRP trades for $2.47, up 15% in a week.