As the rise in Bitcoin (BTC) and XRP has slowed in the last few days, some investors are nervous about this decline, while others are expecting a strong recovery.
An analyst assessing the state of Bitcoin and XRP has warned of a potential bloodbath in XRP as Bitcoin dominance increases.
Pav Hundal, chief analyst at cryptocurrency exchange Swyftx, noted that if Bitcoin dominance continues to grow, XRP could fall and the majority of long positions in XRP could be liquidated.
“The real danger for XRP bulls, who are currently heavily leveraged, is a return to Bitcoin dominance.
A rotation from XRP to Bitcoin would likely lead to a long liquidation bloodbath.”
Stating that investors' expectations for an increase have increased after the incredible rise in XRP, the analyst said that investors are open to long positions even as the XRP price falls.
At this point, citing CoinGlass data, the analyst noted that XRP's open interest (OI) reached $ 3.44 billion on December 5, pointing out that this figure is much higher than the $ 2 billion recorded during the price increase in April 2021.
Finally, the analyst added that he predicts that spot volumes and prices for XRP and altcoins could increase again once Bitcoin stabilizes and its dominance declines.
*This is not investment advice.