XRP and TRON could rally even as BTC under $100k

Ripple and TRON have gained over 50% weekly and the two altcoins may continue their rise during the altcoin season. A market-wide correction pulled altcoins lower on Friday as Bitcoin fell below the $100,000 level.

According to on-chain and technical indicators, XRP (XRP) and TRON (TRX) may recover and extend their rise next week.

Bitcoin erases recent gains and falls below $100,000

Bitcoin’s rise above the $100,000 milestone to an all-time high of $104,088 was supported by consistent institutional capital inflows into Spot BTC ETFs and pro-crypto developments in the United States (BTC).

The largest cryptocurrency soon pulled back, falling nearly 6% from its all-time high. Altcoins reacted to this development and a market-wide correction followed. Most altcoins in the top 20 erased 1% to 5% of their value in a 24-hour period.

Top 10 altcoin price changes in 24 hours | Source: Crypto.news

Analysts at Crypto Finance, part of Deutsche Börse Group, believe that the catalyst for BTC’s rise was Fed Chairman Jerome Powell’s remarks at the DealBook Summit in which he compared bitcoin to gold rather than the US dollar.

XRP and TRON may extend rally as altcoin season continues

The altcoin season index on the blockchain hub signals that this is the “altcoin month.” Altcoin season continues as 75% of the top 50 altcoins continue to outperform Bitcoin over a 90-day period. The indicator shows 86 values ​​from 0 to 100.

Altcoin season index | Source: Blockchaincenter

According to TradingView data, XRP and TRON are up nearly 50% in the weekly time frame. The two altcoins could extend their gains as the altcoin season continues.

Tether (USDT) dominance is at 3.91%, which means investors are likely shifting their capital from stablecoins to cryptocurrencies and altcoins. USDT dominance has been in a downward trend since September 2024.

Traders need to closely monitor the USDT dominance chart for signs of trend reversal or consolidation. If USDT dominance begins to climb again, this could indicate an increase in profit taking or capital inflows from Bitcoin and altcoins.

USDT dominance daily chart | Source: TradingView On-chain and technical analysis

It was noted that total open interest in both XRP and TRON increased earlier this week. Open interest tracks active positions in the token on derivative exchanges. According to Santiment data, as of Friday, December 6, the sudden increase in the metric was followed by above-average open positions.

As seen in the Santiment chart below, both altcoin volumes are above average and experiencing positive increases in early December. This shows the demand and relevance among investors on crypto exchange platforms.

Volume in XRP and TRON and Total Open Interest in USD | Source: Santiment

The funding rate for both altcoins has been positive since November 12. A positive funding rate is indicative of bullish market sentiment among XRP and TRON investors on derivative exchanges.

Binance funding rate for TRX and XRP | Source: Santiment XRP and TRON price prediction

XRP was trading at $2.3028 early Friday. The altcoin’s technical indicators, Relative strength index and moving average convergence divergence, are supporting gains in XRP price.

XRP is facing resistance at $2.5102 and the target is the December 2024 high of $2.9092. A correction could cause XRP to gather liquidity in the imbalance zone between $1.9575 and $2.2011.

Once the inefficiency fills, XRP may attempt to regain lost ground and aim for a 26% price upside.

XRP/USDT daily price chart | Source: Crypto.news

TRON is trading close to the $0.3160 ​​support on Friday. The nearest support is $0.3055, which is the 50% Fibonacci retracement of the rally from the November 9 low to the December 4 high of $0.4500.

TRON could rise 22.42% and target the 78.6% Fib retracement at $0.3881. The altcoin is facing resistance at $0.3396, the 61.8% Fib retracement level as seen on the daily price chart.

Momentum indicator MACD supports the gain thesis on TRON by flashing green histogram bars above the neutral line.

TRX/USDT daily price chart | Source: Crypto.news Strategic considerations

Bitcoin’s price trend is very significant and investors need to watch BTC closely for a sudden correction. A sharp decline could trigger a pullback in altcoins; Therefore, sidelined buyers and traders adding to their long positions need to monitor the BTC price.

According to Coinglass data, XRP and TRON have observed a decrease in their open positions on derivative exchanges in the last 24 hours. This is likely a reaction to Bitcoin falling below the $100,000 level.

Disclosure: This article does not constitute investment advice. The content and materials on this page are for educational purposes only.