Compared to total cryptocurrency market capitalization XRP coinThe XRP dominance metric, which shows market share, has experienced a significant decline since its rise in July 2023. However, popular crypto analyst EGRAG CRYPTO (@egragcrypto) is of the opinion that this downtrend may reverse soon. For this reason, he is of the opinion that a change is approaching.
The Decline of XRP Dominance
EGRAG CRYPTO reports a close to 70% decline in XRP dominance since its peak in July 2023 emphasizes. This decline can be attributed to several factors, including:
Alternative cryptocurrency The rise of its units is happening along with the continuous development of the cryptocurrency market. New projects are emerging and some established projects are gaining more attention. It is possible that this competition could cause market share to redistribute, causing leading players like XRP to lose ground. In particular, Stellar (XLM), a major competitor to XRP, has recently surpassed XRP by launching smart contracts on its mainnet. In this context, this has increased competition in the digital asset space.
Market fluctuations are a known feature of the overall cryptocurrency market. Periods of market decline are likely to affect certain cryptocurrencies more than others. It is possible that this could lead to a decrease in dominance metrics.
#XRP Dominance – The Shake Out 🌟🌟🌟🌟🌟
It’s no secret that #XRP Dominance has taken a significant hit, dropping nearly 70% since the July pump. While a final shakeout might see it dipping into the Yellow Box, what happens next could be explosive 💥
NEWS CONTINUES BELOWI’m highly convinced that… pic.twitter.com/T8h7aV2HN3
— EGRAG CRYPTO (@egragcrypto) April 29, 2024
Potential Shake-Up and Averaging Strategy
The analyst suggests that XRP dominance could drop further, potentially reaching as low as the 0.73% dominance level, reaching the yellow box he calls the “Shakeout” zone. It is possible for this area to be interpreted as a negative sign for many people. Because it represents the bottom point in XRP’s dominance. However, the analyst is of the opinion that this could potentially be a final shakeup before a price increase.
He explains that once XRP reaches this level, he will begin his Dollar-selling Average strategy, anticipating a reversal. This strategy involves saving regularly by depositing a fixed amount of money at regular intervals, regardless of the price of the asset.
Investors following this strategy entered the market during a period of potentially low dominance. Therefore, they can accumulate XRP at an affordable price point and continuously invest as the asset grows.
Long Term Potential and Price Predictions
EGRAG CRYPTO emphasizes the importance of the statement made by Brad Garlinghouse, CEO of Ripple, which distributes XRP on a large scale.
Garlinghouse suggested a scenario in which XRP could capture 10% of the total cryptocurrency market capitalization, estimated at around $5 trillion. EGRAG CRYPTO recently referenced this when predicting the course of the entire crypto market. Based on this hypothetical scenario, he suggests that the price of XRP could reach around $9-10.
