XRP saw a significant rebound, gaining nearly 5% after bulls made a successful attempt to fend off bears' onslaught. XRP reached lows of $0.44 on April 22, following three days of losses. This comes after a week that saw risky assets like cryptocurrency largely decline.
XRP fell below the key daily MA 50 support at $0.456, where bulls aggressively bought the dip. This led to a rebound in the price of XRP.
The sixth-largest cryptocurrency, XRP, traded to intraday highs of $0.476 on April 22, posting a green candlestick for the first time since April 18. Though some of the gains were easing at press time, XRP was up 4.23% in the last 24 hours at $0.47.
Most cryptocurrencies also saw mild gains following dip buying as bears temporarily took a breather. Cryptocurrencies saw a mixed week, marked by declining prices and a few positive developments.
The bearish performance so far has enticed many traders to execute short positions to take advantage of the falling prices. The likelihood of a short squeeze remains as short sellers are forced to close their positions once buying pressure reappears.
The week's passage of comprehensive crypto legislation by the European Parliament, the first major region to do so, represents one potential move in favor of cryptocurrencies. As part of its efforts to grow abroad, the Coinbase cryptocurrency exchange secured a license to provide its services in Bermuda.
Bitcoin dominance suggests opportunities for Altcoins
The growth in Bitcoin's (BTC) dominance rate, or Bitcoin's share of the whole crypto market, has stagnated, suggesting that alternative cryptocurrencies known as altcoins may soon start outperforming Bitcoin.
Bitcoin dominance at the time of writing is at 47.23%. According to TradingView data, the Bitcoin dominance rate reached 48% in the first quarter and has remained there thus far this month. Historically, these have often presented an opportunity for altcoins.
Altcoin prices increased in response to comparable bearish changes in the dominance rate that occurred in mid-October 2021 and June 2022.
XRP is outperforming Bitcoin's daily gains of 1.56%, while XRP comes in at 4%.