Ripple’s (XRP) market capitalization has risen, but could soon be overtaken by Dogecoin (DOGE) if both cryptocurrencies continue to keep pace with recent performance. In the last 24 hours, the price of XRP has increased by 5.20%, while the price of DOGE has jumped by 22%.
If this trend continues, DOGE’s rapid growth rate could allow it to close the market capitalization gap between the two cryptocurrencies. The outcome also depends on whether XRP can maintain or accelerate its growth.
Ripple’s low activity threatens its position
XRP’s market capitalization has grown to $30.63 billion and remains the seventh most valuable cryptocurrency. Dogecoin, on the other hand, is ranked eighth in the standings with a value of $30.26 billion. For context, market capitalization is the product of price and circulating supply.
Thus, since both DOGE and XRP are in circulation, their respective prices determine the growth of market capitalization. Thus, if the XRP price continues to lag DOGE’s meteoric move, it could lag behind the meme coin.
It is noteworthy that the increase in XRP prices may be associated with the recovery of the market as a whole. But for DOGE, its growth depends on growing market interest and Elon Musk’s consistent support for Donald Trump in several positions at the Department of Government Effectiveness (DOGE).
Read More: How to Buy XRP and Everything You Need to Know
With Donald Trump expected to be declared president, Dogecoin is likely to continue its rally, taking advantage of the rise in sentiment brought on by its known favorable stance towards cryptocurrencies. This potential rise in DOGE could put further pressure on XRP, causing it to underperform.
Another indicator that XRP may be lagging behind DOGE is the average dollar investment age (MDIA). MDIA is the average age of all tokens on the blockchain, weighted by purchase price.
When the rate drops, most tokens become dormant and the price may rise. But in this case, the indicator is growing, which indicates low trading activity and makes it difficult for the price to rise.
XRP Price Analysis: Altcoins Are Overbought
A look at the 4-hour chart shows that the Bollinger Bands (BB) are widening, indicating high volatility in the cryptocurrency. However, the upper band of the indicator also touched the XRP price at $0.54.
When the upper BB band reaches the price, it means the asset is overbought. If this happened to the bottom band, then the assets would be considered oversold. Since this is the former, this means that the XRP price will possibly return to the $0.51 level.
Read more: Ripple (XRP) price forecast for 2024/2025/2030.
If this happens, XRP’s market cap could lag behind DOGE if the latter’s price rises. On the other hand, a break of the $0.55 resistance could invalidate this forecast. In this case, the altcoin could jump to $0.60.
