On Friday, the Bitcoin price breakdown below $55000 sparked concern about an extended correction in September. While the bearish momentum may shake out speculative traders, smart money may capitalize on this opportunity to accumulate top altcoins like XRP and Solana.
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. While such coins offer stable investment opportunities in the long term, they are often under the eye of regulatory authorities or witness some developments that diverge their growth potential from others. As broader market signals prolong correction in September, here are the top crypto to buy for a potential rally.
Solana
SOL, the native cryptocurrency of the Solana network, showed a notable correction from $162 to $127 within two weeks. This 22% drop in value is likely linked to a stumble in Solana’s revenue and volume following declining market interest in Memecoin. Some analysts speculate that Tron’s “Sun Pump” meme generator has drawn away participants from Solana’s popular Pumpfun platform.
While there may be some truth to this, Pump.fun generates significant daily revenue, booking between $300,000 and $400,000, while the “Sun Pump” sees only a fraction of that transaction volume. Thus, Pumpfun dominance in his business could boost the SOL price to regain momentum.
The Solana price currently trades at $127.4 and shows a market cap of $59.5 Billion.
Interestingly, the Solana onchain data shows a dramatic increase in active addresses from mid-August to 982.5 to 2.75M. This 180% increase highlights the growing engagement interaction in the SOL network, a core precursor of market demand.
XRP
The XRP price currently trades at $0.53, and a 6.5% weekly hint at a prolonged consolidation. The ripple cryptocurrency has been 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.
Conclusion
The momentum buyers can consider Solana for a dynamic move in the near future, while the long-term investors can keep an eye on XRP as it offers a discounted value for legal challenges.
Frequently Asked Questions (FAQs)
Solana has demonstrated strong recovery potential after a 22% drop, primarily due to the continued dominance of its Pump.fun platform, which generates significant daily revenue
XRP’s consolidation is likely due to ongoing regulatory uncertainty, including Ripple and the SEC’s decision to delay the final judgment payment of $125 million
Momentum buyers may prefer Solana for short-term gains, as it shows recovery potential, while long-term investors may look to XRP
Sahil Mahadik
Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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