The crypto world is electrified by the new all-time high of bitcoin, crossing the $100,000 mark. However, a shadow hangs over the altseason: Ripple (XRP) collapses by 13% in 24 hours. What is behind this unexpected divergence?
A surge in bitcoin that is shaking up the crypto market
December 5 will be remembered by investors: bitcoin reached an impressive peak of $100,000, consolidating its dominant position in the crypto market.
This long-awaited symbolic milestone represents much more than just a number. It reflects a massive craze for the crypto queen, driven by institutions and individual investors hungry for yield.
However, not everything is rosy in the crypto market. If bitcoin attracts the spotlight, altcoins falter.
In just three days, XRP saw its price plummet by 25%, erasing the gains amassed since the beginning of December.
Such a rapid decline raises questions. Is this a simple technical correction or a warning sign of deeper dynamics affecting altcoins?
Ripple: a correction or a loss of confidence?
The collapse of Ripple cannot be understood without examining the dynamics specific to this crypto. After recording a spectacular rally in November, rising 354% compared to just 45% for bitcoin, XRP seemed unstoppable. This exceptional performance was explained by a renewed interest in its network and positive speculation about its future.
But since the beginning of December, things have gotten complicated. The XRP/BTC ratio, a key indicator of Ripple's relative strength against Bitcoin, fell from 0.00003012 to 0.00002334, erasing all gains from earlier in the month.
At the same time, liquidation data on the futures market reveals significant pressure: more than $12.8 million in long positions on XRP were liquidated on December 5, accentuating the bearish movement.
Some analysts also point to a growing disaffection for altcoins in a context of increased dominance of bitcoin. Investors seem to favor assets deemed safer, especially in the face of macroeconomic uncertainty which continues to weigh on global markets.
The future of altcoins versus an all-powerful bitcoin
The growing gap between bitcoin and altcoins, symbolized here by the fall of Ripple, raises a crucial question: are we witnessing the end of the altseason? If the BTC surge attracts attention, it could also siphon off capital dedicated to altcoins.
Still, all hope is not lost for XRP. Technically, there are signs that the current correction could precede a recovery.
The bull flag chart formed on short scales could indicate a potential rebound in the near term, with a theoretical target around $4.83. But this optimistic scenario will largely depend on the maintenance of key levels, particularly around $2.05.
In conclusion, the crypto market is going through a phase of recomposition. While bitcoin continues to shine, altcoins, like Ripple, face headwinds. The next step could be decisive: a rebound would confirm the resilience of altcoins, while a continued fall could mark a lasting turning point in the crypto hierarchy.
Maximize your Tremplin.io experience with our 'Read to Earn' program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.
