Altcoins
XRP Price Slips Below $0.5: What’s Happening?
XRP price has been in a freefall for the past few days as macroeconomic factors eclipse the euphoria around Ethereum’s Shapella upgrade. At press time, XRP was changing hands at $0.4707. The altcoin’s total market cap has crashed 4.73% to $24.3 billion over the last day, while the total volume of XRP increased slightly higher. XRP currently ranks as the 6th largest cryptocurrency after the USD Coin and ahead of Cardano.
Fundamentals
XRP price has been under intense pressure for the past few days on the back of the recent bearish sentiment in the crypto market. The global crypto market has been ticking lower for the past few days as crypto leaders, Bitcoin and Ethereum, led the losses. Statistics by Coinmarketcap show that the global crypto market cap has slipped to $1.19 trillion, a 2.30% decrease over the last day.
Bitcoin, the largest cryptocurrency by market cap, has 2.84% in the past 24 hours to $28,042, while Ethereum, the largest altcoin, fell 2.02% to $1,918.15. The performance of BTC and Ether largely influences the performance of other cryptocurrencies. The decline in crypto prices has been linked to the increase in selling pressure and profit-taking by investors.
Additionally, the uncertainty over the Fed’s monetary policy, as well as concerns about the global economy, have been outweighing post-Shapella gains. Markets have been pricing in a potential interest rate hike by the Federal Reserve. Markets anticipate a 25-basis point interest rate hike in the Fed’s next policy meeting in May. Higher interest rates tend to be bearish for risk assets such as cryptocurrencies.
The US Dollar index has been ticking higher over the past few days, hinting at a strengthening dollar. At the time of writing, the greenback was slightly higher at 101.885. A stronger dollar is usually a bearish factor for cryptocurrencies as investors tend to shift to traditional financial alternatives.
XRP Price Forecast
XRP price has been on a sharp decline for the past few days, falling more than 8% in the past week but 38.83% higher in the YTD. XRP has managed to retain its position above the 50-day and 100-day moving averages, as well as the 50-day and 200-day exponential moving averages. The Moving Average Convergence Divergence (MACD) indicator is bearish, while its Relative Strength Index (RSI) has slipped below the neutral zone.
Therefore, I expect the XRP price to continue falling in the medium term as macroeconomic concerns increase. If this happens, bears will be eyeing the next logical support level along the 200-day EMA at $0.4330. However, a move above the important resistance level at $0.4986 will invalidate this view.
XRP Price Chart
Solana price performance in recent times has been remarkable, surpassing Ripple and Binance Coin to become the fourth-largest cryptocurrency by market cap. The SOL price breached the critical level of $100 for the first time since April 2022 over the weekend to imbue optimism among investors. However, the altcoin has corrected by 7%, suggesting that the market is overheated. At the time of writing, the ‘Ethereum killer’ was trading slightly lower at $111.60.
SOL Outlook
Solana price has made a significant recovery over the past few weeks, climbing above the psychological level of $100. The altcoin has been one of the best-performing assets this year, extending its year-to-date gains to more than 1,025%, with more gains recorded in the past month alone. However, even with such growth, analysts have noted that Solana has a bleak chance of topping its ATH of $260.
The reason behind this is the increase in supply relative to its value. In November 2021, when the Solana price hit its all-time high of $260, its total market capitalization was around $78 billion. Despite the value of the crypto asset being less than half of what it was at the top, its market cap is currently hovering near $50 billion.
This has been brought about by the increase in the Solana supply by more than 100 million SOL over the past two years. According to some analysts, for the altcoin to retest $260, its…
Solana price has noted significant gains over the past few weeks, climbing to its highest level since April 2022. The ‘Ethereum Killer’ almost topped the crucial level of $100 on Friday, before pulling back slightly. The asset’s recent surge has catapulted Solana’s total market cap to $39.6 billion, ranking 5th after and above BNB and XRP, respectively. Solana has jumped by more than 22% in the past week and more than 80% in the month to date. At the time of writing, SOL price was trading 0.90% lower at $93.10.
Catalysts Behind SOL’s Rally
Solana price has been on a strong bull run over the past few days, rocketing to its highest level in 20 months as the network benefits from the substantial activity and strong interest in memecoins. The SOL token, the native digital asset of the high-performance blockchain platform Solana, has shown some serious strength over the past few weeks, outperforming all the altcoins in the market.
The recent surge in the Solana price has been linked to heightened on-chain activities on the Solana blockchain. Notably, the ongoing hype for the blockchain’s speedy transactions, cheap fees, and a lottery of meme coin issuances has buoyed SOL’s on-chain activity. Metrics have revealed that Solana has been the strongest draw among on-chain traders, with trading volumes and network fees outperforming Ethereum- the largest altcoin by market cap.
Cited figures provided by DeFi aggregator DeFiLlama…
Solana price has jumped more than 8% over the past week, breaching the important level of $60. At the time of writing, Solana was trading 3% higher at $61.07. The asset’s total market cap has climbed to $25.9 billion over the past week, ranking it the 6th largest cryptocurrency after XRP. The total volume of SOL traded over the last day has declined by 8%.
SOL’s Bullish Cues
Solana’s price has been among the best-performing cryptocurrencies this year amid continuous growth. The “Ethereum killer” has consistently impressed investors throughout the year on the back of a resurgence in bullishness, which saw SOL’s price climb more than 513% in the year to date. Institutional investors have also shared the bullish sentiment, making Solana their most preferred altcoin.
In the week ending November 24, Solana recorded inflows worth nearly $3.5 million, significantly more than the other altcoins’ inflows combined. The asset’s monthly inflows were higher at $40.2 million, lower than Ethereum’s $99.6 million inflows in the same period. Other altcoins, including Litecoin and Ethereum, noted significant outflows, making Solana nearly half of the home for DeFi. This implies that when it comes to institutions, Solana is currently the best-performing altcoin with the potential of a long-term rally much higher than other digital assets.
Notably, the Solana DeFi ecosystem accomplished a significant milestone earlier this week. Its Total Value Locked (TVL) hit a new yearly peak of over $655 million,…
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