Altcoin Season Persists: XRP and TRON Could Extend Rally

Despite a market-wide correction, XRP and TRON have posted over 50% weekly gains and may continue their climb in the ongoing altcoin season. As Bitcoin slips under the $100,000 level, it has dragged altcoins down, but on-chain and technical indicators suggest that XRP and TRON could recover and extend their rally next week.

Bitcoin Erases Recent Gains, Slips Under $100,000

Bitcoin’s rally to a new all-time high above $100,000 was fueled by consistent institutional capital inflows to Spot BTC ETFs and pro-crypto developments in the U.S. However, the largest cryptocurrency pulled back shortly after, down nearly 6% from its all-time high. Altcoins reacted to the development, and a market-wide correction followed, with most top 20 altcoins erasing between 1 and 5% of their value within a 24-hour period.

XRP and TRON Could Extend Rally as Altcoin Season Persists

The altcoin season index indicates that it is “altcoin month,” with 75% of the top 50 altcoins outperforming Bitcoin over a 90-day period. XRP and TRON gained nearly 50% on the weekly timeframe, and their rally could continue as the altcoin season persists. Tether (USDT) dominance is at 3.91%, meaning traders are likely rotating their capital from stablecoins to cryptocurrencies and altcoins.

On-Chain and Technical Analysis

The total open interest in both XRP and TRON spiked earlier this week, followed by above-average open interest as of Friday. The volume in both altcoins is above average, with positive spikes in early December. The funding rate has been positive since November 12, indicating bullish market sentiment among XRP and TRON traders on derivatives exchanges.

XRP and TRON Price Forecast

XRP trades at $2.3028, with technical indicators supporting gains in the altcoin’s price. XRP faces resistance at $2.5102, and the target is the December 2024 peak of $2.9092. A correction could send XRP to collect liquidity in the imbalance zone between $1.9575 and $2.2011.

TRON trades close to support at $0.3160, with the closest support at $0.3055, the 50% Fibonacci retracement of the rally from the November 9 low to the December 4 peak of $0.4500. TRON could rally 22.42% and target the 78.6% Fib retracement at $0.3881.

Strategic Considerations

Bitcoin’s price trend is key, and traders need to watch BTC closely for an impulsive correction. A steep decline could usher a pullback in altcoins. XRP and TRON both have observed a decline in their open interest across derivatives exchanges in the past 24 hours, likely a reaction to Bitcoin’s decline under the $100,000 level.

Traders should keep a close eye on Bitcoin’s price trend and USDT dominance chart for signs of a trend reversal or consolidation. A positive funding rate and above-average open interest indicate bullish market sentiment among XRP and TRON traders.

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Tips for traders:

* Watch Bitcoin’s price trend closely for an impulsive correction.
* Monitor USDT dominance chart for signs of a trend reversal or consolidation.
* Keep an eye on the funding rate and open interest in XRP and TRON.
* Be prepared for a potential pullback in altcoins if Bitcoin’s price declines steeply.