The altcoin market is starting to regain a strong setup.
On the macro side, the U.S Navy still considers the risk at the Strait of Hormuz “too high,” which keeps oil markets on edge and adds more pressure to an already stressed global economy.
For Bitcoin [BTC], the timing couldn’t be worse. BTC’s supply in loss is creeping towards the 40-50% range, a zone that has historically lined up with the early stages of bear markets. In fact, analysts at CryptoQuant call this the most frustrating phase of the cycle.
Notably, even long-term holders are starting to realize losses, according to BTC’s LTH SOPR. That makes recent trader moves (shorting BTC and going long on oil) feel more strategic. Especially as the market braces for a longer period of economic stress.
In short, BTC is now stuck in a classic sideways range around $70k. Historically, when both macro and technical pressure stack up like this, capital starts flowing into altcoins as traders look for quicker gains.
That said, the Altcoin Season Index isn’t showing signs of rotation yet. Ethereum dominance [ETH.D] is struggling below the 11% resistance, keeping the ETH/BTC ratio in the red and reinforcing the current setup.
That naturally raises the question – With Bitcoin consolidating and no clear rotation into Ethereum [ETH], is the broader crypto market turning bearish as capital flows out, or will other altcoins step up and soak up the flow?
Ripple gains momentum as altcoin bull setup strengthens
The timing of XRP’s momentum doesn’t look like a coincidence.
Strategically, XRP is set to acquire BC Payments Australia to secure an Australian Financial Services License. If it goes through, Ripple would boost its footprint to over 75 licenses, giving it even more global reach.
Notably, this is starting to show on-chain too. At press time, CryptoQuant data revealed that XRP withdrawals on Binance spiked multiple times in recent days, including over 14k transactions, even as the broader altcoin market stayed weak.
Worth pointing out, however, that the altcoin market is starting to show some life again.
On the technical side, TOTAL3 (market cap ex-BTC/ ETH) has been consolidating between $640 billion and $740 billion. Since early February though, it’s up about 11%. In fact, it gained 3% intraday, signaling some solid momentum.
Meanwhile, BTC’s is down 15% over the same period. To make things more interesting, XRP has seen $1.4 billion flows into its ETF, signaling that capital is moving selectively rather than across the entire altcoin market.
If this trend holds, XRP might be poised to lead the next altcoin rally.
Final Summary
- Bitcoin is stuck around $70k with on-chain stress building, while TOTAL3 and selective altcoins like XRP flash renewed momentum.
- Strategic moves and $1.4 billion ETF inflows mean that XRP could lead the next altcoin rally.
