XRP Faces Continued Short Pressure Amid Ripple Case Hopes, DOGE Edges Closer to Death Cross as BTC Dominance Climbs

XRP Bears Hold Firm Despite Ripple Legal Optimism, DOGE Nears Death Cross as Bitcoin Dominance Reaches 4-Year Peak

While the cryptocurrency market has shown signs of stabilization, traders remain cautious, particularly with altcoins like XRP, as Bitcoin (BTC) continues to attract capital and solidify its dominance.

XRP, the token used by Ripple for cross-border payments, has gained over 3% in the past 24 hours, climbing to $2.24. The rally is largely driven by speculation that Ripple’s legal dispute with the U.S. Securities and Exchange Commission (SEC) may be nearing its final stages.

However, derivatives market data suggests that traders remain skeptical. Open interest in XRP perpetual futures across major exchanges has steadied around 1.35 billion XRP, while annualized funding rates and cumulative volume delta (CVD) remain in negative territory, according to data from Velo.

Negative funding rates indicate that short sellers are paying to hold onto their bearish positions, underscoring the market’s short bias. Meanwhile, the negative CVD suggests that selling pressure continues to outweigh buying demand, raising concerns about the sustainability of XRP’s price gains.

Given these bearish signals, doubts persist about whether XRP’s rally has strong support. Several other major altcoins, including DOGE, SOL, SUI, HBAR, LTC, BTC, TRX, and HYPE, have also posted negative CVDs over the past 24 hours, reflecting broader market hesitation.

Dogecoin on the Brink of a Death Cross

Dogecoin (DOGE) is on the verge of a significant technical breakdown, with its 50-day simple moving average (SMA) nearing a crossover below its 200-day SMA—commonly known as a “death cross.” This bearish formation suggests that short-term price momentum is weakening relative to long-term trends, potentially signaling a more prolonged downtrend.

Technical traders often view death crosses as warning signs, and confirmation of this pattern could invite further selling pressure. However, moving average crossovers are lagging indicators, meaning they reflect past price movements rather than provide definitive future predictions.

DOGE has already lost 65% of its value since peaking above $0.48 in December, reinforcing the ongoing bearish sentiment surrounding the meme-based cryptocurrency.

Bitcoin’s Market Share Hits a Four-Year High

Bitcoin’s dominance—the percentage of total crypto market capitalization held by BTC—has climbed to 62.5%, marking its highest level since March 2021, according to TradingView.

Since December, when the total cryptocurrency market cap surpassed $3.6 trillion, BTC’s dominance has risen from 55% to over 62%. This increase signals a growing investor preference for Bitcoin as a safer asset during times of market uncertainty.

With altcoins struggling to gain traction, Bitcoin’s rising dominance highlights a defensive shift among traders, who are opting for stability in an unpredictable market.

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