Crypto analyst Dark Defender has suggested that an upcoming shift in Bitcoin (BTC) dominance could trigger a significant move for $XRP. According to Dark Defender, recent technical signals indicate that XRP may be on the verge of a noteworthy upswing, driven by broader market dynamics.
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AAPLTechnical outlook for Bitcoin dominance
Dark Defender identified BTC dominance at 58.84% after a recent pullback from its previous high. His analysis highlights an Elliott Wave structure, with Bitcoin’s market share projected to fall in several stages. The current level sits just below a descending trendline stretching back to the 2018 peak, positioned around the 60% to 62% range.
He marked key Fibonacci retracement levels, with 61.80% at 60.14% and the 38.20% line at 62.09%. If BTC dominance were to approach these levels, it would return to a significant long-term resistance band. In the Elliott Wave count, such a movement forms wave (2), after which a reversal into wave (3) could drive dominance lower.
BTC dominance remains below the long-term descending trendline connecting peaks since 2018, with Fibonacci resistance levels at 60.14% and 62.09% acting as key thresholds for a possible market shift.
Dark Defender mapped out potential downside targets, assigning 55.32% with the 123.60% Fibonacci extension as the first major level. The next targets are 52.54% with the 161.80% extension and potentially 45.90% at the 261.80% Fibonacci extension. The 45.90% mark aligns with a rising trendline linking prior BTC dominance lows. Beyond this drop, the outlook includes a recovery toward 52.54% before another possible decline for wave (5).
Momentum and RSI signals
The monthly Relative Strength Index (RSI) supports the projection of a decreasing BTC dominance. The RSI had recently moved above 70 but fell toward the middle of its range, with a current reading of 51.59 below its moving average of 54.09. This technical picture suggests that momentum behind BTC’s dominance is weakening further.
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XRP’s opportunity amid a projected rotation
Although Dark Defender did not specify an exact price target for XRP, his analysis links the token’s upside potential to the projected drop in BTC dominance. If Bitcoin’s share fails to sustain the 60.14% and 62.09% resistance levels, he expects a move toward 55.32%, 52.54%, and eventually 45.90%.
XRP has historically gained momentum when Bitcoin dominance declines, indicating the token could be well positioned to benefit from a shift in overall crypto market share.
A sustained decrease in BTC’s market share often allows altcoins, including XRP, to increase their presence and valuations. Previous cycles have seen XRP and other assets rally when Bitcoin’s influence wanes in the broader cryptocurrency landscape.
Currently, analysts and traders are closely monitoring these technical markers, noting that confirmation of a trend reversal in BTC dominance could act as a catalyst for the next major altcoin rotation. If the downward targets for Bitcoin dominance materialize, XRP could see a renewed period of strength as market participants rotate capital into alternative crypto assets.
