- XRP and Solana are in the spotlight amid the ongoing memecoin frenzy.
- Both XRP and SOL have divergent price forecasts but with longer-term bullish sentiment.
Ripple’s associated XRP and Solana (SOL) are moving in an uptrend, benefiting from the ongoing rally in the memecoin sector. The uptrend XRP and Solana demonstrated has helped strengthen optimism in the altcoin market.
SOL and XRP Benefits From Memecoin Frenzy
Within the last 30 days, XRP’s price surged by over 355%, while SOL rose 44.34% in the same timeframe. An earlier drop in Bitcoin’s (BTC) dominance initiated the altcoin season, a 90-day period during which altcoins consistently outperform the leading cryptocurrency.
Memecoins based on the XRP Ledger, like XRP Army (ARMY), XRP God Candle (XGC), and Bull (BULL) have paved the way for the altcoin season. Solana-based Dogwifhat (WIF), Bonk (BONK), Popcat (POPCAT), Peanut the Squirrel (PNUT), and Cat in a dogs world (MEW) also played their part. These memecoins have gained increased popularity in the past week.
Memecoins, newly launched on XRPL, which traded on Magnetic X, a decentralized exchange platform, have locked 79,000 to 146,000 XRP in total value on their chains. On the other hand, CoinGecko data showed Solana-based memecoins crossed $20.42 billion in market capitalization on Wednesday.
On-chain metrics have further supported the weekly gains in XRP and Solana. Onchain data analytics platform Santiment recorded a spike in volume this week, as memecoins boosted trading activity in both XRP and Solana ecosystems. Notably, the total number of XRP holders increased by around 1.5% over the previous 30 days, indicating steady growth in the metric.
Additionally, Open Interest (OI), another key metric, spiked in both XRP and SOL this week and remained above average. Therefore, the price gains combined with the rising open interest marks a sign of bullish sentiment among traders.
What Next For XRP and Solana
As of this writing, XRP price was trading at $2.38, with a market capitalization of $135.5 billion. Despite the price decline of 5.4% in the last 24 hours, technical analysis shows that XRP could revisit its January 2018 peak of $3.40 before entering price discovery.
The 161.80% Fibonacci retracement of the rally establishes $4.4523 as the XRP price discovery target for this cycle. Analysts believe XRP could hit a new all-time high if it moves past the $2.58 mark.
Regarding Solana’s prediction, the altcoin may find support at the 61.8% and 50% Fibonacci retracements of its climb from the August low of $110 to an all-time high of $264.39. The two main support levels are $205.41 and $187.20, respectively.
Solana trades at $241.56, up 3.5% in the last 24 hours. However, technical indicators suggest that Solana will have a short-term retracement. RSI slows downward and approaches neutral, and MACD flashes red histogram bars beneath the neutral line.
Nevertheless, Solana could enter price discovery and rally towards $359.80, the 161.80% Fibonacci retracement level. This project is possible if the consolidation ends and Solana resumes its climb.
As a CNF report revealed, SOL could reach $400 by January and $1,000 by the end of 2025.
