$SOL #sol #xrp $XRP Both Solana SOL and Ripple XRP experienced a noticeable decline over the past week, within a broader downtrend affecting most alternative cryptocurrencies, amid global conditions characterized by economic uncertainty and intensified trade rhetoric between the United States and China. These tensions have increased the aversion to risk in the markets and negatively impacted trading activity on digital asset platforms. Click here for advertising services or press releases for the crypto project.
Solana SOL lost more than 10% of its value over the week, settling at a price of $156, according to CoinGecko data. Dogecoin DOGE experienced a sharp drop of 14%, while Ripple XRP decreased by 5%. Bitcoin BTC, however, fell by a milder 4.3% and is currently trading near $105,000.
This general decline is attributed to an increasing aversion to risk in the markets, as traders have become more cautious amid rising global economic uncertainty.
This decline comes at a time when the market is experiencing weakness in buying momentum from individual traders, a decline in futures trading volumes for both Bitcoin BTC and Ethereum ETH, in addition to stagnation in decentralized finance (DeFi) activities.
A temporary rise followed by a correction.
Solana SOL had surpassed the $180 level in mid-May, supported by a decline in inflation indicators and a easing of the U.S. trade rhetoric, which pushed the cryptocurrency market into a temporary rise.
Dogecoin DOGE and Ripple XRP quickly followed suit before returning to a downward trajectory.
In contrast, Ethereum ETH maintained its stability over the week, recording gains of nearly 40% over the month, supported by optimism regarding the new upgrade known as Pectra, which is considered one of the broadest updates in its network since the Dencun upgrade last year.
Despite the overall market decline, Bitcoin's BTC dominance rose to about 65%, recording an increase of more than 10% since the beginning of the year.
This accumulation of factors has driven cryptocurrency prices to technically sensitive levels, signaling the possibility of continued pressure in the near term unless surrounding indicators change.
Technical analysis of Solana SOL
The daily chart of Solana SOL shows a clear failure in attempts to break the upper limit of the descending price channel that has extended since the end of 2023, where the price stopped at $180 and then reversed downward.
This decline intersects with the emergence of a reversal technical pattern on the 4-hour timeframe, which is the double top pattern, confirmed by a clear break of the neck line at the $164 level, followed by a failed retest.
Key technical levels:
Nearby support: $150 - $135
Key support: $120
Resistance: $160 then $180
Strongest resistance: $200 - $227
Predictions:
Continued trading below $164 keeps the chances of a drop open towards $135 then $120.
Revisiting $180 is a positive reversal signal and may push the price to test the $200 - $227 areas.
The overall trend remains bearish as long as the price is within the price channel and below the simple 200-day moving average ($179).
Technical analysis of Ripple XRP
Ripple XRP's price faced additional pressure after dropping below the simple 200-day moving average ($2.32), which is considered a classic negative indicator reflecting a shift in trend from upward to downward. The price is currently trading around $1.92 after breaking the $2.25 support, placing the currency on a corrective path if trading continues below these levels. Key technical levels:
Nearby support: $1.98
Deeper support: $1.85 then $1.59
Nearby resistance: $2.25
Strongest resistance: $2.70 then $3.40
Predictions:
Continued price trading below $2.25 suggests further decline towards $1.85 then $1.59.
Breaking $2.25 and holding above the 200-day moving average may restore upward momentum and open the way towards $2.70 then $3.40.
The overall trend remains weak technically unless the $2.32 level is regained.
Summary of the scene
The technical pressures faced by both Solana SOL and Ripple XRP cannot be separated from the global economic and political context, where there is a prevailing sense of concern about the macroeconomic future, especially amid rising trade tensions and declining risk appetite.
In such an environment, relying on flexible trading strategies based on accurate readings of technical levels remains crucial, especially for new traders who may find themselves facing uncalculated volatility if thoughtful decisions supported by realistic analysis are not made.
