Crypto analyst Doctor Magic (@DoctorMagic) has recently presented a compelling case for investors to consider buying XRP in the current market climate. He outlined three key reasons in a series of posts on X, offering a detailed analysis that positions XRP as a potentially lucrative investment.
The first reason centers around the relative strength of XRP compared to Bitcoin (BTC) and the broader market. Doctor Magic emphasizes XRP’s resilience, noting its fortitude against BTC and its overall market performance. “XRP’s strength against BTC and across the board is notable and should not be ignored at this point. When markets turn up again (soon), the pump on XRP will be violent!” he asserts. This conclusion is drawn from a chart that plots XRP’s market cap dominance relative to BTC and the entire crypto market over a weekly timeframe. The dominance percentage indicates market capitalization compared to BTC, serving as a critical metric reflecting investment flows and market preferences.
From 2016 to 2021, XRP’s dominance faced a significant downward trend, suggesting a period of strong preference for Bitcoin. However, beginning in 2022, this trend stabilized, indicating that XRP may have found a floor in its market cap dominance. This stability sets the stage for a possible bullish reversal. Notably, the key support level for the XRP/BTC pair is pinpointed at 0.00000750. This level has been repeatedly tested without a decisive break, reinforcing it as a crucial floor where market sentiment has supported the price relative to BTC. In 2024, after bouncing off this support area, there was a noticeable increase in dominance, signaling growing investor confidence in XRP’s potential for recovery. The dominance of XRP over the entire crypto market currently stands at 1.47%. After touching down in the support zone ranging from 1.02% to 1.05%, XRP.D also experienced an uptick, further highlighting the renewed market interest and potential bullish sentiment.
The second reason involves the market’s recovery post-dump with stable open interest (OI). Doctor Magic points out that XRP swiftly rebounded from a recent price crash without any increase in open interest. “XRP has now retraced the whole yesterday dump with zero OI added. ZERO. And negative funding,” he noted. This recovery pattern is significant as it suggests that the rebound was driven by solid buying interest rather than speculative trading or new positions, indicating investor confidence in XRP’s fundamental or long-term potential.
Lastly, the current levels of Open Interest (OI) for XRP align with a historical baseline that has consistently marked significant market tops and bottoms over the past four years. Doctor Magic emphasizes, “OI on XRP at the baseline blue line] that has marked every top and every bottom the last 4 years.” This observation points to the critical juncture at which current OI levels stand, indicating potential turning points in the market. Historically, major price movements have preceded the reaching of these OI levels.
At press time, XRP was trading at $0.5030.
 presents a strong case for investing in XRP, citing its strength, market recovery, and pivotal OI levels.){kind=link}