Broader Risk Appetite Lifts Crypto Sector, but Bitcoin Lags
Ethereum (ETH) and Dogecoin (DOGE) extended their upward momentum alongside a 12% surge in XRP, as the altcoin market staged an energetic rebound. The move reflects growing appetite for risk assets amid improving sentiment in global markets, even as Bitcoin remains confined to a tight trading range.
Ethereum climbed back above $2,400, adding over 5% in 24 hours, fueled by steady inflows into decentralized finance protocols and renewed developer activity on the network. Dogecoin also saw a 6% jump, with on-chain data suggesting whale wallets increased their holdings during the recent dip, signaling confidence in further upside potential.
XRP, however, was the standout performer, posting a double-digit rally after breaking through key resistance at $0.85. The breakout came amid ongoing optimism over the Ripple-SEC case and bullish chart patterns suggesting scope for further gains.
Market Sentiment: Correlation With Equities
Alex Kuptsikevich, chief market analyst at FxPro, noted that the rebound aligns with “growing appetite in the stock markets,” adding that crypto’s rally is moving in lockstep with broader equity gains. However, he cautioned that Bitcoin remains “trapped in a narrow range,” with traders awaiting a decisive catalyst before committing to larger positions.
This divergence between Bitcoin’s muted price action and altcoins’ strength has prompted speculation about an “altcoin season” — a period when alternative cryptocurrencies outperform BTC in relative returns.
Key Drivers and Outlook
- Ethereum: Network usage and institutional staking demand remain strong.
- Dogecoin: Increased large-holder accumulation supports bullish sentiment.
- XRP: Legal clarity prospects and technical breakout fuel momentum.
If equity markets sustain their climb and macroeconomic headwinds ease, analysts suggest the altcoin rally could extend into the next quarter, with Ethereum and XRP in particular well-positioned for further gains.
Still, Bitcoin’s range-bound trade may act as a brake on overall market euphoria until a clear breakout occurs.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.