- XRP appears to be bouncing back after “$86 million in total liquidations,” and $4 billion in profit-taking “dragged” the asset down the price curve.
- An analyst has advised that investors hold Bitcoin when it shows at least 60% dominance and switch to XRP when it shows a stronger setup.
Ripple’s XRP recorded an unexpected pullback on December 3, declining from $2.8 to $2.3 following reports that South Korea’s president, Yoon Suuk Yeol, had declared an emergency martial law. Based on the information available, the president accused the opposition of undermining the constitutional order by siding with North Korea. However, this was formally lifted during a Cabinet meeting. In all, the law was in effect for six hours.
Impact on the Market
Within the period, Bitcoin (BTC) declined to $93,000 but has since bounced back to $96k. Ethereum (ETH) also declined to $3,500 but has since returned to $3,700.
According to our research, whales took advantage of the market pullback to aggressively acquire the dip. LookOnChain data confirms this, revealing that many whales transferred $163 million in USDT to Upbit to “bottom-fish” the opportunity.
Meanwhile, profit-taking has been rampant in the past few days as XRP investors realize over $4 billion in profits. According to data, XRP witnessed more than $86 million in total liquidations in just 24 hours. Long positions accounted for $41.74 million, and short positions accounted for $44.91 million. Comparatively, this was higher than the liquidation recorded by Bitcoin.
At press time, XRP had begun to bounce back as its 24-hour trading volume increased to $44 billion. Currently, it only trails Bitcoin and USDT in the entire market.
According to the Head of Revenue and Business at crypto brokerage firm FalconX, Austin Reid, XRP’s recent accumulation is largely backed by institutional investors.
We’ve seen 10x growth in volume at FalconX between the first and second halves of Q4. This isn’t just retail action —institutions are driving the momentum.
Confirming this assertion, we looked into the “Whale to Exchange Flow” metric and discovered that the asset has recorded its largest net inflow of $95 million.
Analyst Discloses Crucial XRP Setup
Amid the effort of XRP to reclaim its daily high, renowned crypto analyst Benjamin Cowen has highlighted key strategies to preserve portfolio value and capitalize on its persistent ascension. Firstly, Cowen pointed out the formation of a “double bottom” pattern when the asset was trading at $0.67 and 771 satoshis for the XRP/BTC pair on November 12.
Highlighting the 60% dominance of Bitcoin, the analyst disclosed that altcoins like XRP typically face correction during such periods, making it ideal to hold Bitcoin.
Delving into the price data, he observed that the XRP/BTC pair had risen to 2200 satoshis when the asset was trading at $2 in USD terms. At that period, Bitcoin was struggling to “charge up” the price curve, and its dominance fell significantly.
In a nutshell, Cowen argues that it is more rewarding to hold Bitcoin during the dominance phase and switch to XRP when it shows a stronger trend against BTC.
The great thing about identifying the #BTC dominance uptrend 3.5 years ago was to preserve the Satoshi valuation of my portfolio by not just sitting in bleeding ALTs for years. Yes, people who sat in #XRP for years are doing ok with the current spike, but think how much better it would have been to sit in BTC for the last few years, and then take off the maxi hat after dominance hit 60% and start looking for good setups.
At press time, XRP was trading at $2.6 after surging by 3% in the last 24 hours.
