XRP Market Cap Risks Falling Behind DOGE Despite 5% Increase

By admin On Nov 6, 2024

Ripple’s (XRP) market cap rose but could soon lose its stop to Dogecoin (DOGE) if both cryptocurrencies continue to keep up with the recent performances. Over the last 24 hours, XRP’s price has increased by 5.20%, while DOGE jumped by 22%.

Should this trend persist, DOGE’s rapid growth rate could enable it to close the gap in market cap between the two cryptocurrencies. The outcome also hinges on whether XRP can sustain or accelerate its gains.

Ripple Low Activity Puts Its Position At Risk

XRP’s market cap rose to $30.63 billion and remains the seventh most valuable cryptocurrency. Dogecoin, on the other hand, is eighth in the standings, with a value of $30.26 billion. For context, the market cap is the product of price and circulating supply.

Therefore, since both DOGE and XRP have all their total supply in circulation, their respective prices determine the market cap growth. Therefore, if XRP’s price continues to lag behind DOGE’s fast-paced movement, it could drop behind the meme coin.

Notably, XRP’s price increase could be linked to the broader market recovery. But for DOGE, its growth hinges on rising market interest and Elon Musk’s consistent support for Donald Trump with the several posts of the Department Of Government Efficiency (D.O.G.E).

XRP vs. Dogecoin Market Cap. Source: Santiment

With Donald Trump anticipated to be declared president, Dogecoin will likely continue its rally, leveraging the boost in sentiment driven by his known favorable stance toward cryptocurrencies. This potential surge in DOGE could put additional pressure on XRP, causing it to lag behind.

Another metric suggesting that XRP could fall behind DOGE is the Mean Dollar Invested Age (MDIA). The MDIA is the average age of all tokens on a blockchain weighted by the purchase price.

When the metric falls, most tokens are no longer dormant, and the price can increase. But in this case, the metric is rising, suggesting low trading activity and making it difficult for the price to increase.

XRP Mean Dollar Invested Age. Source: Santiment

XRP Price Analysis: Altcoin Overbought

A look at the 4-hour chart shows that the Bollinger Bands (BB) is expanding, indicating high volatility around the cryptocurrency. However, the upper band hand of the indicator has also touched XRP’s price at $0.54.

When the upper band of the BB hits the price, it means that the asset is overbought. Assuming the lower band did, then the assets would have been deemed oversold. Since it is the former, it means that XRP’s price might possibly retrace to $0.51.

XRP 4-Hour Analysis. Source: TradingView

If this happens, then XRP’s market cap could fall behind DOGE if the latter’s price increases. On the other hand, a break above the $0.55 resistance could invalidate this forecast. In that scenario, the altcoin could jump toward $0.60.

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