XRP Could Press Higher Against Bitcoin Should Altcoin Breakout Take Place
XRP Ready to Bound Higher?
After months of bleeding out, altcoins have recently started to mount a comeback. After topping at 72% earlier this year, Bitcoin dominance — the percentage of the cryptocurrency’s market capitalization that is made up of BTC — has fallen towards 67%, according to CoinMarketCap.
While this isn’t a large gain per se, especially considering that Bitcoin dominance remains far from its 32% all-time lows during 2018’s altcoin bull run, it’s a start.
Bitcoin Jack, a former analyst at cryptocurrency analysis and markets research group Bravado, noted that altcoins are starting to show some much-needed strength. He noted that the altcoin market capitalization to BTC pair could see some rapid growth should some technical analysis scenarios play out in full.
If we print a signal of strength, you better be paying attention because things could start moving like before
The assets that stand to gain the most from this recovery in altcoins are those at the top of the cryptocurrency market ladder, like Ethereum and XRP, for liquidity is crunching capital into the upper echelons of the industry, as Adaptive Capital’s Willy Woo noted in a recent analysis published to Twitter.
It isn’t only the technicals that signal an impending recovery in altcoins, like XRP and Ethereum, against the market leader. Per previous reports from Ethereum World News, there are industry executives that think that non-Bitcoin assets may begin to gain traction once again after 2018’s flush of lower-quality projects.
Speaking to Bloomberg, Scott Freeman, a co-founder of the crypto-centric financial services firm JST Capital, said that “altcoins will continue to catch up”. He specifically cited the fact that with the “technologies are now being adopted”, alternative blockchains will be able to solve “real problems”, creating a value proposition and investment thesis.
Han Kao, the CEO of Crypto Briefing, echoed this analysis. In his own comment to the outlet, Kao remarked that while he doesn’t expect a 2017-like move in altcoins, projects that “begin to demonstrate clear use-cases and adoption” will “start reclaiming a larger portion of investor attention”.
Altcoins Still Not a Good Long-Term Play?
Not everyone is convinced that altcoins remain a good play in the long term, at least against Bitcoin. Willy Woo argued that altcoins are “highly correlated to Bitcoin“, and thus don’t act as portfolio diversifiers. Instead, investments in altcoins “only increase portfolio risk”. Woo quipped that while cynics say Bitcoin is “old tech, too slow, [and legacy],” it is the only cryptocurrency with a solidified Lindy Effect — which is the theory that the longer a technology/asset stays alive, the more survivability it has.
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Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of EWN or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.