- Will XRP Flip Bitcoin? The price of the former has risen by more than 17% in the past 24 hours.
- With the current trend, the index has now registered a six-year high.
As the cryptocurrency market continues to heat up, XRP is showing significant strength, with its price rising to $2.31 and on-chain activity reaching new highs.
The conversation surrounds whether XRP could challenge Bitcoin [BTC] This cycle is gaining momentum, supported by bullish price action and increasing market activity.
But can XRP really turn around Bitcoin, or is this just speculative hype?
Can XRP Flip Bitcoin?
The Ripple chart has seen a powerful rally in recent weeks, with XRP breaking through multiple resistance levels and trading at $2.31.
The 200-day moving average (MA) of $0.62 and the 50-day MA of $0.87 confirmed a bullish crossover, indicating a continued uptrend.
The MACD (Moving Average Convergence Divergence) reflected this momentum, with the MACD line sitting significantly above the signal line at 0.36.
However, the Relative Strength Index (RSI) of 93 indicated that XRP was overbought at the time of writing, making a short-term correction likely before further upside.
Source: TradingView
AMBCrypto also noted the correlation coefficient (CC) of 0.66 between XRP/USD and Bitcoin/USD.
Although XRP and Bitcoin are moving in the same direction for now, the difference in momentum indicates that XRP could decouple from Bitcoin, which is critical for a potential flipping.
Bitcoin dominance and transaction volume
According to AMBCrypto’s analysis of data from CoinMarketCapBitcoin’s dominance has fallen to 55.7% from 58.9% last month, signaling a resurgence of the altcoin led by XRP.
Historically, Bitcoin’s dominance tends to decline during bull cycles as liquidity shifts to altcoins, allowing projects like XRP to gain market share.
Source: CoinMarketCap
However, Bitcoin still has significantly higher transaction volumes than XRP. The latter’s transaction volume spiked to $8.8 billion on December 1, the highest in months.
However, despite the spike, it could not reach the $13.25 billion recorded by BTC. At the time of writing, Bitcoin’s transaction volume reached $7.95 billion, compared to $2.42 billion for XRP.
Source: Santiment
XRP network activity shows growth
Despite Bitcoin’s dominance in transaction volume, XRP activity surged on-chain. Daily active addresses on the XRP Ledger have seen a significant spike, indicating rising participation and usage of the network.
Realistic or not, here is the XRP market cap in terms of BTC
Market sentiment around XRP is overwhelmingly positive, with mentions and discussions on social media trending upward.
However, for Bitcoin to truly turn around, these metrics will need to see more spikes and be able to maintain momentum. The king coin remains dominant and XRP remains one of its challengers.