Crypto analyst Dr. Magic (@Doctor_Magic_) outlined three reasons why investors should consider buying XRP now. In a series of posts on X, Dr. Magic detailed the dynamics and data that position XRP as a potentially profitable investment in the current market.
#1 Relative Strength of XRP
The crypto analyst highlights XRP’s price versus Bitcoin (BTC) and its resilience in the broader market. “XRP’s strength versus BTC and across the board is notable and should not be ignored at this stage. When markets rally again (soon), the XRP pump will be wild!”
This analysis is based on a chart that displays market cap dominance as a ratio to BTC and the overall crypto market on a weekly time frame. The dominance percentage is a critical metric that acts as an indicator of market cap relative to BTC, and thus reflects relative investment flows and market preferences.
From 2016 to 2021, XRP dominance showed a significant downward trend, indicating a period during which the market preference was heavily biased towards Bitcoin. However, starting in 2022, this trend has leveled off, indicating a potential stabilization or bottoming out relative to Bitcoin. This phase suggests that XRP may have found a bottom in terms of its market cap dominance, setting the stage for a possible reversal.
The analyst identified a key support level for XRP/BTC at 0.00000750. This level has been tested multiple times without a decisive breakout, identifying it as a critical floor where market sentiment has consistently supported the price against BTC. There has been a notable increase in dominance in 2024 following a rebound from this support area, indicating growing investor confidence in its potential for recovery.
In terms of overall crypto market dominance (XRP.D), the figure currently stands at 1.47%. After reaching the 1.02% to 1.05% support zone, XRP.D also experienced an increase, which further highlights the renewed market interest and potential bullish sentiment.
#2 Recovering from a reset with stable open interest
Dr. Magic also highlights a notable aspect of the market’s behavior – its rapid recovery from yesterday’s price crash without any increase in open interest (OI). “XRP has now recouped yesterday’s entire dump with zero added OI. ZERO. And negative funding,” Dr. Magic noted.
This recovery pattern is important because it implies that the rebound was not driven by a surge in speculative trading or new positions being opened, but rather by sustained buying interest, likely from investors confident in the fundamentals or long-term potential.
#3 Support from historical open interest level
Finally, the crypto analyst points to current open interest (OI) levels for XRP, which are in line with a historical baseline that has consistently marked significant market highs and lows over the past four years. “XRP OI at Baseline [blue line] “This has been marked by all the tops and bottoms over the last 4 years,” notes Dr. Magic.
This observation suggests that current OI levels are at a critical juncture, indicating potential turning points in the market. Historically, when OI reaches these levels, it precedes major price moves.
At the time of publication, XRP was trading at $0.5030.
