- Solana is testing a potential reversal zone after recent selling pressure.
- XRP is compressing inside a descending wedge near key Fibonacci support.
- Volume and confirmation will be critical for any sustained breakout.
The crypto market is showing early signs of rotation, with Solana (SOL) and XRP both approaching technically sensitive levels that could define their next major move. While neither asset has confirmed a full trend reversal, recent price action suggests growing interest from traders positioning ahead of potential breakouts. Analysts point to tightening structures, developing support zones, and early momentum shifts as reasons these two large-cap tokens are back in focus.
Solana Shows Early Signs of a Potential Turnaround
Solana is attempting to stabilize after facing repeated selling pressure near recent highs. At the time of writing, SOL trades around $138, posting a modest daily gain alongside strong trading volume. That combination hints at renewed participation, even as broader momentum remains cautious.
Technical analysts note that Solana recently rejected a key resistance zone, forming a local top. However, price has since pulled back into an area of interest that aligns with an unfilled bullish fair value gap near prior lows. This zone is drawing attention as a potential entry area, especially as price structure begins to resemble an inverse head-and-shoulders pattern — a setup often associated with trend reversals when confirmed.
Consolidation Break Raises Short-Term Optimism for SOL
Additional optimism comes from signs that Solana may be emerging from a prolonged consolidation phase. After weeks of sideways movement, SOL has already attempted a bounce, suggesting buyers are starting to defend demand zones more aggressively. If price continues to hold above this region, a gradual push toward previous highs becomes more likely.
That said, higher-timeframe indicators remain mixed. The relative strength index sits below the neutral 50 mark, signaling that bullish momentum is still developing. Moving averages also remain overhead, creating resistance that bulls must overcome before any sustained rally can take shape. Momentum indicators like MACD show bearish pressure is easing, but not yet reversed.
XRP Compresses Inside a Descending Wedge
While Solana searches for support, XRP is tightening within a descending wedge — a structure that often precedes a sharp directional move. Price is currently testing a key short-term Fibonacci retracement zone derived from its latest impulse move.
The most closely watched support lies between the 0.5 and 0.618 Fibonacci levels, roughly around the $2.02–$2.09 range. XRP is trading slightly above this zone, with volatility continuing to compress as buyers and sellers reach equilibrium. Historically, this type of compression tends to resolve with a decisive breakout once volume returns.
XRP’s current movement appears driven purely by chart dynamics rather than network or fundamental developments. Analysts stress that a clear expansion in trading volume will be critical to validate any breakout from the wedge. Until then, price remains vulnerable to short-term swings in either direction.
Also Read: Solana Mobile’s SKR Launch vs. Zcash Chaos: A Governance Wake-Up Call for Crypto
Market forecasts suggest moderate upside potential if support holds, but confirmation is still needed. For now, XRP traders are watching structure and volume closely, knowing that patience often pays during periods of compression.
Both Solana and XRP are approaching pivotal technical moments. Solana is attempting to build a base after selling pressure, while XRP is coiling within a narrowing range that could soon break. Neither setup guarantees immediate upside, but both offer defined levels that traders can manage risk around. As volatility quietly builds, the next decisive move may not be far away.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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