A popular analyst says he found a striking correlation between a pair of crypto assets and XRP.
Former Adaptive Capital partner Willy Woo points out that Chainlink (LINK) and Cardano (ADA) followed the epic collapse of XRP last week with a higher correlation than other cryptocurrencies.
According to Woo, the price movements indicate that traders believe the two projects could one day face regulatory challenges like XRP’s.
“Chainlink and Cardano are most closely related to XRP. This is not a complete trackback situation. This is a two-day trend, so traders are reflecting their XRP regulatory fears most to these two cryptocurrencies. “
Shaky journey for the altcoin market
Woo says it will be a tumultuous journey for the altcoin market, following the SEC’s regulatory action against Ripple.
Woo says that the emergence of Bitcoin as a powerful store of value is the first step on the long road to the emergence of a fully embodied crypto ecosystem that includes legitimate altcoin-based platforms.
Woo says that as robust crypto projects emerge and become stronger over time, Bitcoin’s dominance could gradually decrease to one third of the total market capitalization of all cryptocurrencies.