Egrag Crypto shared a detailed analysis of XRP dominance and why the token could see a massive breakout in its market share. With XRP dominance approaching a critical level, the analyst pointed out the importance of the 0.5 Fibonacci retracement level that will define whether the present trend has sufficient strength to continue the upward movement.
Egrag Crypto noted that XRP dominance has to close above the 0.5 Fibonacci level which currently stands at 2.51% on the monthly timeframe and is currently at 2.57%. This slight difference could open the path to further gains as we are just a few days away from the monthly closing.
The analyst pointed out, as there were only 48 hours left for the critical close. A close above this level monthly and a break out and sustain above it into December may expose the 0.702 Fibonacci level meaning that more gains in the dominance of XRP is expected.
XRP Dominance Void Effect
In his chart analysis, Egrag Crypto pointed out an open “void” in the XRP dominance chart which might result in a spike upwards if the token’s market cap penetration rises above 3%. According to the analyst, however, the way opens up for XRP dominance to pose a threat above this level as resistance becomes much lighter. This “void effect” as well as the FOMO can lead to a sharp increase in dominance especially around the 4% mark last seen in July 2023.
As XRP dominance approaches these key levels, several Fibonacci targets come into focus: It was 0.702 at the 11 percent, the 0.786 at 15 percent and the 0.888 at 21% level. The ideal bullish picture will be a break above 5.75%, which, as mentioned, is the “KABOOM Zone” and could potentially push XRP dominance to the unknown region.
XRP’s Sky Dome Breakthrough
A major barrier to break above is the descending trendline referred to as the ‘Sky Dome’ connecting highs from May 2017 and July 2023. According to Egrag Crypto, if XRP can overcome this impregnable wall, the token may enter what he calls the “SPACE EXPANSION,” which he sees as a precursor to a massive increase in the percentage of XRP in the market.
The analyst has set a target of XRP achieving double-digit dominance within the cryptocurrency market and the expert is confident that the token will likely continue its upward trend and may even vie for the number one spot. The XRP community keeps on being active as Egrag Crypto calls for calm. However, a surge in the coming weeks can place XRP to second place on the dominance chart.
