Analyst Warns of Potential ‘Bloodbath’ for XRP Amid Bitcoin’s Dominance

Traders’ hopes for XRP to return to its ATH may be in vain if Bitcoin’s dominance continues to rise, according to leading Swyftx analyst Pav Hundal, as reported by Cointelegraph.

“The real danger for highly leveraged bulls lies in the relative strengthening of Bitcoin. Capital rotation into digital gold could trigger a ‘bloodbath’ of liquidations,” the specialist stated.

According to CoinGecko, the dominance of the leading cryptocurrency stands at 54.8%. On November 15, it reached 58.99%.

The publication noted that some traders speculate the metric could range from 60% to 70% before the altcoin season begins.

Hundal highlighted the rise in OI for XRP futures to levels twice the peaks of 2021. The expert views the current situation as “close to euphoria.”

On December 3, the figure surged to $4.29 billion, later decreasing to $3.54 billion, according to Coinglass. For comparison, in April 2021, it did not exceed $2 billion.

According to Hundal, if Bitcoin stabilizes, it “could calm nerves, and spot volumes may rise again.”

At the time of writing, XRP is valued at $2.276. From a peak of $2.909, the quotes have corrected by 21.7%.

The decline may have been triggered by the lack of confirmation of rumors regarding the registration of Ripple’s RLUSD stablecoin. FOX Business sources suggested that the potential launch of the “stable coin” would take place on December 4.

Back in late November, investors poured a record $95 million into XRP funds.