XRP Faces Bearish Headwinds Despite Ripple Legal Hopes, DOGE Approaches Death Cross as Bitcoin’s Market Share Hits 4-Year High

The crypto market has found temporary stability, but traders remain hesitant about altcoins like XRP, while capital continues to flow into Bitcoin (BTC), reinforcing its dominance.

XRP, the digital asset used by Ripple for cross-border transactions, has surged by over 3% in the past 24 hours, reaching $2.24. The rally is largely driven by renewed optimism that Ripple’s lengthy legal dispute with the U.S. Securities and Exchange Commission (SEC) may be nearing a resolution.

Despite this price jump, market indicators suggest that short sellers are still in control. Open interest in XRP perpetual futures across major exchanges remains steady at around 1.35 billion XRP, while annualized funding rates and cumulative volume delta (CVD) continue to show negative readings, according to Velo data.

A negative funding rate means that traders holding short positions are paying fees to maintain their bets against XRP, signaling a bearish market sentiment. The negative CVD—an indicator of net capital inflows—reveals that selling volume has been outpacing buying activity, suggesting that the price increase may not be sustainable.

These signals cast doubt on XRP’s upward momentum, with several other major altcoins, including DOGE, SOL, SUI, HBAR, LTC, BTC, TRX, and HYPE, also displaying negative CVDs over the last 24 hours.

DOGE Nears Death Cross, Raising Bearish Concerns

Dogecoin (DOGE) is on the verge of forming a bearish “death cross” pattern, with its 50-day simple moving average (SMA) close to crossing below its 200-day SMA. This technical pattern suggests that short-term momentum is underperforming long-term trends, often serving as a signal for extended bearish conditions.

Traders who follow trend-based strategies closely watch SMA crossovers, and a confirmed death cross could prompt increased selling pressure. However, it’s worth noting that moving average crossovers are lagging indicators, meaning they primarily reflect past price action rather than accurately predict future movements.

DOGE has already fallen by 65% since reaching its December high of $0.48, adding to concerns about its continued decline.

Bitcoin’s Dominance Reaches Highest Level Since 2021

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

Since the crypto market peaked above $3.6 trillion in December, BTC dominance has climbed from 55% to over 62%, signaling a shift in investor preference toward Bitcoin amid ongoing market uncertainty.

This growing dominance suggests that traders are favoring Bitcoin as a safer bet, reducing their exposure to altcoins as bearish trends continue to weigh on the broader market.