Ripple’s price reached a peak of $0.63 on Feb. 29, marking a 30% gain for February 2024. However, a decline in Bitcoin dominance suggests that leading altcoins like Ripple’s XRP could see even more substantial gains in March.

Bitcoin Dominance in Decline as Altcoins Gain Traction

Bitcoin was the focus of the crypto market in February, achieving several price milestones and witnessing record-breaking ETF inflows. But as the month came to a close, investors started turning their attention to other sectors of the market.

TradingView’s Bitcoin Dominance (BTC.D) chart shows Bitcoin’s market capitalization as a percentage of the overall cryptocurrency market. The decline in Bitcoin dominance, from 55.2% to 54.3% by Mar. 1, coincided with a surge of $175 billion into the altcoin market, resulting in an 8.5% increase in the overall crypto market capitalization.

Bullish XRP Traders Raise Leverage

While XRP is currently trading around $0.60, recent trends in the derivatives markets indicate that traders are increasingly bullish on XRP. The funding rate for XRP spiked from 0.04% to 0.10% between Feb. 27 and Mar. 1, suggesting that long position holders are paying higher fees to short traders to maintain their positions.

Historically, such spikes in funding rates have led to significant price increases for XRP. If this trend continues, XRP could potentially reach a new peak above $0.65 in March 2024.

Overall, the decline in Bitcoin dominance and the increasing interest in altcoins like XRP signal a shift in investor sentiment towards the altcoin market. As the crypto bull market gains momentum, investors are showing more confidence in altcoins, paving the way for potential gains in the coming months.

For more news and updates on cryptocurrencies, investing, and finance, explore Global Crypto News.

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