Crypto: Ripple Falls By 13% Despite Bitcoin At $100,000

The crypto world is electrified by the new historical peak of bitcoin, surpassing the $100,000 mark. However, a shadow looms over the altseason: Ripple (XRP) is collapsing by 13% in 24 hours. What is behind this unexpected divergence?

A surge in bitcoin that shakes up the crypto market

December 5 will be remembered by investors: bitcoin reached an impressive peak of $100,000, consolidating its dominant position in the crypto market.

This symbolic milestone, long awaited, represents much more than just a number. It reflects a massive enthusiasm for the king of crypto, driven by institutions and individual investors eager for returns.

However, not everything is rosy in the crypto market. While bitcoin attracts the spotlight, altcoins are wavering.

Ripple, once seen as one of the most promising challengers, has lost 13% of its value in 24 hours. This drop, which has seen it go from $2.36 to $2.30, seems to be part of a downward trend that began on December 3.

In just three days, XRP has seen its price plummet by 25%, erasing the gains accumulated since the beginning of December.

A drop this rapid raises questions. Is it merely a technical correction or a sign indicating a deeper dynamic affecting altcoins?

Ripple: a correction or a loss of confidence?

The collapse of Ripple cannot be understood without examining the specific dynamics of this crypto. After experiencing a spectacular rally in November, with an increase of 354% compared to only 45% for bitcoin, XRP seemed unstoppable. This exceptional performance was explained by a resurgence of interest in its network and positive speculation about its future.

But since the beginning of December, things have become complicated. The XRP/BTC ratio, a key indicator of Ripple’s relative strength against Bitcoin, has dropped from 0.00003012 to 0.00002334, erasing all gains from the beginning of the month.

At the same time, liquidation data in the futures market reveal significant pressure: over $12.8 million in long positions on XRP were liquidated on December 5, exacerbating the downward movement.

Some analysts also point to a growing disenchantment with altcoins amidst increased dominance of bitcoin. Investors appear to be favoring assets deemed safer, especially in the face of the macroeconomic uncertainty that continues to weigh on global markets.

The future of altcoins in the face of an all-powerful bitcoin

The growing gap between bitcoin and altcoins, exemplified here by Ripple’s drop, raises a crucial question: Are we witnessing the end of altseason? While the spike in BTC attracts attention, it could also siphon off capital dedicated to altcoins.

Yet, all hope is not lost for XRP. Technically, some signs indicate that the current correction could precede a recovery.

The bullish flag chart pattern formed on short timeframes could indicate a potential short-term rebound, with a theoretical target around $4.83. But this optimistic scenario will largely depend on maintaining key levels, particularly around $2.05.

In conclusion, the crypto market is undergoing a phase of reshaping. While bitcoin continues to shine, altcoins like Ripple face headwinds. The next step could be decisive: a rebound would confirm the resilience of altcoins, while a continued drop could mark a lasting turning point in the hierarchy of cryptos.