XRP’s Potential to Rebound: Can It Compete with Solana After Recent Market Trends?

After Solana’s surge, is XRP finally poised to fight back?

• Solana’s relative strength shone through as it nearly doubled in value against XRP.

• The SOL/XRP trading pair now faces a key technical resistance on the charts.

Over the past two months, Solana [SOL] has clearly taken the upper hand over XRP, steadily outperforming it in relative strength.

If you’ve been holding SOL since early April, you’ve seen your investment nearly double—up about 90%. Meanwhile, XRP holders enjoyed a steadier climb, with a 46.5% ROI.

The SOL/XRP ratio backs up this story, jumping almost 40% to hit $76.01 at press time. This implied that it takes 76.01 XRP to buy one SOL at the press time SOL/XRP rate.

Not surprisingly, users have been leaning more towards Solana, especially since it has seen a nearly 12% monthly jump in daily active addresses, while XRP’s dipped by 6.8%. At the time of writing, the pair seemed to be bumping up against a familiar technical barrier.

Source: TradingView (SOL/XRP)

After this sharp uptick, the ratio has been approaching its mid-February resistance levels. Back then, XRP was trading at $2.34 before rocketing by 21% in a week to $2.83 on 15 February.

That surge triggered SOL/XRP to tumble by a brutal 25% in under ten days.

Now, the real puzzle: Was Solana’s undervaluation the catalyst that funneled capital into XRP? Or did XRP’s own buying pressure and market strength drive that breakout independently?

Solana’s bounce-back – A blueprint for XRP’s next move

Solana entered Q2 riding the comeback trail after a rough Q1, one that earned it the “worst performing asset” crown among high-caps.

SOL plunged to a multi-year low of $95 on 8 April, wiping out roughly 35% of its value from its $190 open. On the contrary, XRP held its ground, closing Q1 with modest 2.45% gains from $2.08.

Clearly, XRP benefitted from the rotation as traders sought safer bets.

Source: TradingView (SOL/USDT)

In fact, Solana was so oversold that it set itself up for a serious comeback. Now, halfway through Q2, it has already surged by nearly 90%. Overheating? Not quite yet.

Open Interest (OI) seemed to tell us a similar story. At press time, SOL’s OI surged by 4.45% to $7.4 billion, signaling strong market conviction, while XRP’s OI lagged at a mere 2.01%. If this trend keeps up, Solana could keep pulling ahead in the race for investor attention.

XRP, on the other hand, might need a bit of a reset—a healthy dip to shake off some of that overvaluation and get investors interested again.

History shows that sometimes, you need a good “dip” to set the stage for a fresh rally. So, maybe XRP’s next big move depends on hitting that reset button first.

Conclusion

As the dynamics between Solana and XRP evolve, traders must pay attention to key indicators that could signify shifts in momentum. While Solana appears to maintain its upper hand for now, XRP’s potential reset might reveal hidden opportunities. Investors should stay vigilant and ready to adapt to these changes for future engagement in the cryptocurrency space.