Bias for XRP Shorts Persists Despite Rally, DOGE Heads Into ‘Death Cross’; BTC Dominance Surges
The current landscape of the cryptocurrency market reflects a precarious stability, particularly as traders navigate the cautious waters of altcoins such as XRP while predominantly favoring Bitcoin (BTC). In the last 24 hours, XRP gained over 3%, now priced at $2.24, buoyed by optimistic sentiments surrounding an impending resolution in the ongoing legal conflict between Ripple, the company behind XRP, and the Securities and Exchange Commission (SEC).
As this price ascent unfolds, open interest in perpetual futures across major exchanges has steadied around 1.35 billion XRP. However, analysis from Velo reveals concerning signals: both the annualized funding rates and cumulative volume delta (CVD) are negative. Negative funding rates indicate that those holding short positions are paying fees to maintain their bearish bets, suggesting a predominance of short seller sentiment in the market. Additionally, the negative CVD implies a greater accumulation of selling volume than buying volume, raising potential alarm bells for a bearish trend.
This has led market analysts to question the sustainability of XRP’s recent upward movement. The mood is compounded by similar bearish trends among notable large-cap tokens, including DOGE, SOL, SUI, HBAR, LTC, and others, which have also showcased negative CVDs over a 24-hour period.
In an alarming parallel, DOGE—popularized by its meme status—appears to be on the verge of a "death cross," where its 50-day simple moving average is set to cross below its 200-day counterpart. This technical indicator typically signifies that short-term price momentum is lagging behind long-term trends, which could further catalyze selling pressure. The market has noted a staggering 65% drop in DOGE’s value since its peak above 48 cents in December last year.
BTC Dominance on the Rise
In stark contrast, Bitcoin’s dominance within the cryptocurrency market is evidencing a robust resurgence, now occupying 62.5% of the total market capitalization—the highest level observed since March 2021, as per TradingView data. This shift is particularly remarkable against a backdrop of turbulence, indicating a growing preference for Bitcoin over other cryptocurrencies.
Bitcoin’s dominance rose from 55% to over 62% concurrent with the total cryptocurrency market cap exceeding $3.6 trillion last December, suggesting that investors may increasingly turn to BTC as a safe haven during broader market downturns.
Given these dynamics, the ongoing developments in the market will be critical for traders and investors alike, as the interplay between regulatory resolutions, technical indicators, and Bitcoin’s dominance continues to shape the crypto landscape.
