Traders are starting to shift towards major altcoins, such as XRP from Ripple and SOL from Solana, particularly because Bitcoin is consolidating near its historical highs.
After Bitcoin (BTC) set new records at the beginning of the week, attention shifts to the leading coins. Some analysts note that institutional demand and a clear regulatory environment create conditions for powerful movements among top coins.
On Friday morning, May 23, during the Asian trading session, Bitcoin fluctuated slightly below $111,000, with a slight decline amid profit-taking typical after a rise. Cardano (ADA), Dogecoin (DOGE), and Solana (SOL) rose by up to 4%, while Ethereum (ETH), XRP, and BNB (from BNB Chain) increased by less than 1.5%.
The broad CoinDesk 20 (CD20) index, which tracks the most liquid coins by market capitalization, gained 1.2% over the past 24 hours.
Bitget Research's chief analyst Ryan Li told CoinDesk on Telegram that a potential decline in BTC dominance could spark a broader altcoin season, in which coins like XRP and Solana are in a better position for growth.
He noted that the improvement in the regulatory situation around XRP and recent technical breakout signals have led traders to expect the coin's price to rise in the medium term to $3-8.
Recently, XRP formed a 'golden cross' against BTC on the weekly chart — a historically bullish signal indicating a potential long-term trend reversal. Since the end of 2020, the ratio between XRP and BTC has remained in a sideways range, but it is likely beginning to break out after the SEC's decision last month not to appeal the case against Ripple.
Li also added that SOL could rise to $220-$300 amid speculation regarding the launch of an exchange-traded fund (ETF), while ADA could potentially break through in the range of $1 to $3.
Singapore-based QCP Capital stated during a broadcast on Thursday that the latest BTC surge confirms a stable trend supported by improved structural factors and relatively low volatility.
"This growth appears to be more structurally justified than the previous one, with fewer changing impulses and more solid fundamentals," the company noted, adding that the short-term drop following the initial record rise of BTC triggered profit-taking, but buyers "quickly restored demand."
However, overall macroeconomic risks remain. Resurgence of tariff concerns, rising yields on U.S. government bonds, and a strengthening dollar could lead to increased volatility, especially for altcoins, warns QCP. Traders recommend being selective and focusing on assets with strong fundamentals and clear regulatory outlooks.
Meanwhile, FxPro analyst Alex Kuptsikevich reported in an email that the Bitcoin sentiment index as of Friday is slightly below the 'extreme greed' level — this could indicate further growth potential in the coming days.
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