Will Solana or XRP Prove Resilient to a Potential Market Correction?

Large-cap altcoins like XRP and Solana (SOL) are crucial for crypto investors to have a diversified portfolio.

Solana (SOL) and XRP are among the top cryptocurrencies that have shown resilience amid a broader market correction. While SOL price attempts to recover from a 22% drop, XRP price remains consolidated after failing to capitalize on the recent SEC settlement. Here's an analysis of both crypto to assess their growth potential and the key factors impacting their market performance.

Solana (SOL) Price Analysis

After rallying from $100 to a high of $162 in August, Solana price showed a notable setback in the last two weeks. This 22% drop from the peak can be attributed to a few interesting developments.

Solana (SOL) Revenue and Volume Stumble After Declining Memecoin Interest

Solana price showed a strong bullish momentum in early 2023 thanks to the爆発的な人気of memecoins and the generation of substantial revenue via Solana's Pump.fun meme generator.

However, as Memecoin interest declined in the last quarter, notably after Dogecoin (DOGE) and Shiba Inu (SHIB) failed to deliver on earlier promises, some analysts speculate that Tron's “Sun Pump” meme generator might have also lured away users from Pump.fun.

While there could be some truth to this claim considering Tron's meme generator sees a small fraction of that交易量, Pumpfun is still generating a substantial amount of daily revenue, booking between $300,000 to $400,000. Hence, Pumpfun's dominance in his business might still help the SOL price regain momentum.

Solana Onchain Active Addresses Surged 180% In Late August

Another interesting development that might boost SOL price is the dramatic increase in active addresses on the Solana network.

From mid-August to the 24th, Solana onchain data showed a strong surge in active addresses, rising from 982.5K to 2.75 Million, marking a significant 180% increase. This uptick in network engagement highlights the growing interaction on the SOL network, which could be a crucial precursor to market demand.

2. XRP Price Analysis

After rallying from $0.30 to a high of $0.58 in early 2023, XRP price attempts to sustain the bullish momentum after the recent SEC settlement failed to ignite a strong rally. Here are some key factors impacting XRP price.

XRP Price Remains Consolidated After Failing To Capitalize On SEC Settlement Delay

The XRP price currently trades at $0.53, and a 6.5% weekly hint at a prolonged consolidation. The ripple cryptocurrency has been trading sideways since January 2022, failing to ignite the anticipated rally even after the recent SEC settlement.

This uncertainty among buyers may stem from Ripple and the SEC’s decision to delay the final judgment payment of $125 million.

According to attorney Fred Rispoli, Ripple and the SEC have agreed to a trust arrangement where 111% of the monetary judgment will be held in trust. This amount will be paid to the SEC either 30 days after the appeal deadline or once an appeal concludes. While this does not guarantee an appeal, the move suggests a heightened likelihood.

#SECvRipple Update: Well, the odds have increased of an appeal. @Ripple and SEC have agreed to an arrangement where 111% of monetary judgment will be held in trust, to be paid to SEC only on (1) 30 days after appeal deadline or (2) after appeal concludes. This is not a…1/2

— Fred Rispoli (@freddyriz) September 4, 2024

However, the recent data from Santiment shows renewed interest from large holders that control between 100M to 1B XRP, as accumulation spiked to 9.56B XRP. Whale buying often boosts market sentiment and is observed to coincide with the bottoming of the downtrend.

Solana (SOL) or XRP Better For Short-Term And Long-Term Investment?

Both Solana (SOL) and XRP are offering unique opportunities for investors amid the broader market correction. While SOL price attempts to recover from a 22% drop, XRP price remains consolidated after failing to capitalize on the recent SEC settlement.

Momentum buyers might prefer Solana (SOL) for its strong recovery potential, while long-term investors can keep an eye on XRP, which offers a discounted value due to the ongoing legal challenges.

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