Market Downturn and Key Influences

Solana (SOL) and XRP experienced significant price declines over the past week, driven by broader market corrections, Bitcoin’s drop, and geopolitical developments. U.S. President Donald Trump’s announcement of new tariffs on Canada, Mexico, and China raised inflation fears, adding to market uncertainty. Meanwhile, speculation around potential altcoin ETFs in 2025 continues to shape investor sentiment.

Solana’s Struggles: Declining Metrics and Market Activity

On-chain data indicates a decline in Solana’s network engagement:

• Falling Active Addresses: Fewer users are participating in transactions, reducing fee revenue and protocol activity.

• Decreasing New Addresses: Fewer traders are joining the Solana ecosystem.

• Drop in Total Value Locked (TVL): Solana’s TVL has fallen 16% from its January peak, reflecting waning investor interest.

Derivatives data also suggests uncertainty, with fluctuating funding rates and declining open interest, indicating that traders remain unsure about SOL’s price trajectory.

XRP’s Price Drop and Legal Uncertainty

XRP has also faced downward pressure, dropping 16% in the past week due to Bitcoin’s decline and market-wide corrections. Additional factors include:

• Regulatory Outlook: Ripple’s CTO Stuart Alderoty expressed optimism about Trump’s administration potentially resolving the SEC lawsuit, especially with SEC Commissioner Hester Peirce taking a leading role in crypto policy.

• Bearish Sentiment: Open interest and trading volume for XRP derivatives have declined, and funding rates remain negative, signaling a lack of confidence among traders.

Technical Analysis: Solana and XRP

• Solana (SOL): Currently faltering below $200, with key support between $169 and $198. Technical indicators suggest a bearish outlook, with RSI declining and MACD signaling negative momentum.

• XRP: Trading near $2.37 support, with further downside risk. The RSI and MACD both indicate bearish momentum.

Expert Insights on Meme Coins and ETFs

Tim Ogilvie of Kraken highlighted Solana’s role as a hub for meme coins, emphasizing their ability to capture cultural trends and drive engagement. Nick Forster of Derive.xyz remains optimistic about potential altcoin ETFs for assets like Solana, XRP, and Dogecoin, which could bring legitimacy and increased capital inflows to the crypto market.

While Solana and XRP are facing short-term struggles, long-term growth potential remains, particularly if regulatory developments and ETF approvals create favorable conditions later in 2025.