Crypto analyst Pav Hundal warns that a rise in Bitcoin dominance could trigger a significant sell-off in XRP, potentially leading to a "bloodbath" of liquidations for leveraged XRP bulls, as a shift of capital from XRP to Bitcoin is likely.

Despite XRP's recent price retracement and a nearly 18% drop from its yearly high, traders remain optimistic, with open interest nearing double the 2021 levels, indicating high leveraged long positions in XRP.

Hundal notes that the market might be approaching euphoria territory, and while a Bitcoin stabilization could ease concerns, high funding rates on some exchanges suggest exuberant market sentiment, highlighting the risk for XRP investors if Bitcoin dominance continues to increase. Show Less