During the past two months we have seen a slow steady grind up on bitcoin dominance, but what does this mean exactly? Put simply it means that relative to bitcoin the totality of coins are down. In real terms different types of alt coin are generally hit harder.
With bitcoin currently performing extremely well , what is happening in the alt coin market? Put simply, its not good, There are currently a few factors which are leading to many alt coins under-performing
Coin types
Not all alt coins are created equal, in recent Bitcoin movements one thing that is of note is that when Bitcoin has a big move, alt coins are left behind until Bitcoin finds a range, however for the most part other blockchain related coins such as Etherium, Xrp, Cardano, Litecoin, etc tend to go up in dollar value on the back of the Bitcoin move, however staking related coins such as Tezos, Algorand etc tend to lag behind the move significantly. The 3rd category being small caps/speculative coins these can either significantly pump or entirely stagnate based on for want of a better word "Hype" .
Diluting the market
When Bitcoin is performing well, interest in the overall space increases, this leads to new projects legitimate and otherwise popping up to take a piece of the pie, in a sense in the most recent low in bitcoin dominance many of the major alt coins did well but some did not perform as much as you would expect based on the bitcoin dominance, put simply, the inflow of new coins dilutes the market to the point that many more established projects "miss the hype train" .
Narrative
The current narrative we are being told that bitcoin and only bitcoin is seeing heavy investment is another reason that small caps are suffering, its a much more risky asset class and while bitcoin is acting currently as "digital gold" and performing well despite other markets falling, the same cannot be said for alt coins.
What is undervalued?
A very subjective term but for me i am considering a coin to be undervalued if the fundamentals of the project have not changed, it hasn't undergone huge token printing, and its dollar value is much lower than expected compared to the average gains seen in the alt coin market cap. While many coins are currently undervalued, the two I will use as examples are XTZ and XRP.
Tezos XTZ
In my opinion much of the hype of staking coins has been taken away by the more speculative yield farming tokens, Though huge gains can be made, so can huge losses and the field is mostly based on ponzi's , hyperinflation and hype, with more maturity in the space I expect staking coins to regain some of their appeal 
We can see here on the XTZ/USD chart that on the daily, Tezos has not only broken down past previous support channels, but in actual value it is sitting at the same price range we saw during the march crash, when we consider during this time period that alt coin dominance has risen and overall market value has also risen, to me this looks like not only a possible buying opportunity but a very undervalued coin.
Ripple's XRP
Whilst on the macro scale XRP's chart structure is similar to Bitcoin and other large caps, the retracements have been far more severe, considering the last cycles extreme blow off top on XRP this is somewhat expected, however in the coming months I do expect based not only on the fact that relatively speaking at this price XRP is still cheap, Having broken out of the falling channel and retested the top channel zone as support we can expect upside, and with the XRP/Flare network token airdrop and snapshot date of december 12th I expect prices to react over the next 6 weeks and demand for XRP to increase during that time.
As always do your own research and happy trading!
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