Solana (SOL) has faced significant price challenges in recent weeks, with a notable drawdown that has left it struggling to recover. 

This decline has triggered concerns in the market, further compounded by a key bearish signal. There is a rising concern among investors that these factors could lead to even more bearishness in the short term.

Solana Faces Strong Bearishness

Solana’s price has slipped below the realized price for the first time in almost 3 years. The realized price is a key metric that represents the average price at which an asset was last moved. When the spot price falls below this, it signals that the holders of Solana are collectively experiencing net unrealized losses. 

This situation is often considered a bearish signal, as it suggests that investors are sitting on losses, which may prompt some to sell in an attempt to avoid further declines. As a result, the potential for panic selling increases when the price trades below the realized price.

On a broader scale, Solana is also experiencing weak macro momentum, highlighted by the technical indicators. The Chaikin Money Flow (CMF), which measures the volume-weighted flow of money into and out of an asset, has noted a sharp downtick. The CMF is currently below the zero line, indicating that outflows are dominating inflows. 

As the CMF remains negative, it suggests that Solana’s price recovery could be hindered. The lack of buying interest and the dominance of selling activity are likely to limit any significant upward movement.

SOL Price Is Vulnerable To A Decline

Solana’s price has been down nearly 30% over the last ten days, and it is currently trading at $125, just under the critical $126 resistance level. Despite recently bouncing off the support at $118, the overall sentiment and market conditions suggest that recovery may be short-lived. The price remains under pressure, with further declines possible if key levels fail to hold.

If Solana fails to secure $126 as support, the altcoin could drop back to $118 or even lower, possibly reaching $109. This scenario would reinforce the bearish outlook and prolong the struggle for recovery. Without a strong rally, Solana could face more losses in the short term.

However, if Solana manages to breach and flip $126 into support, it could trigger a bounce toward $133, followed by potential resistance at $143. A successful breach of $143 would invalidate the current bearish thesis and signal a more strong recovery. If this occurs, Solana could regain some of the losses it has recently suffered, offering hope for investors.

A new XRP price forecast has emerged, offering insights into the cryptocurrency’s next bearish move. A crypto analyst who previously predicted XRP‘s crash below $2 has provided a more comprehensive outlook, outlining key support and resistance areas that will determine XRP’s next target. 

According to TradingView crypto analyst, ‘MMBTrader,’ the XRP price is set to dump below the $2 threshold. As of writing, CoinMarketCap reports that XRP is trading at $2.2, reflecting a modest 3% increase in value in the last 24 hours. 

XRP Price Projected To Crash To $1.5

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The TradingView crypto expert has identified a Head and Shoulder pattern on the XRP daily chart, consisting of three peaks: left shoulder, head, and right shoulder. Typically, a classic Head and Shoulder pattern is considered one of the most common indicators of a potential price breakdown, with the price of a cryptocurrency expected to reverse from bullish to bearish. 

Looking at the price chart, a break below the pattern’s neckline around the $1.95 price point would confirm XRP’s bearish position. If the cryptocurrency fails to hold the $1.95 support level, a sharp drop, possibly up to 50%, is expected. This massive crash would effectively place the price around the $1.5 level or even as low as $1.2.

While he expects a possible crash to $1.5, MMBTrader also projects an alternative bullish scenario in which the XRP price initiates a strong rebound. The analyst revealed that if the cryptocurrency consolidates near $2 without breaking lower, then a bounce to new highs could follow.

Additionally, the TradingView expert believes that the asset could also experience a significant rally toward $5 after its projected 50% price crash. He highlights that if XRP can hold the support level near $1.5, then a strong reversal could occur, potentially triggering a bullish move between $4 and $4.5.

Whales Scoop Up $385 Million Amid Market Downtrend

While XRP experiences slow momentum due to the market’s recent decline, whales are seizing the opportunity to buy the dip, accumulating a significant amount of the token. According to crypto analyst Brett, an XRP whale has executed a large-scale transaction, buying over 167 million XRP, valued at $368.4 million, in a single purchase.

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Brett revealed that this whale purchase was made as the market panicked over increasing volatility and price declines. Over the past few weeks, XRP has struggled to recover from bearish trends, joining the ranks of top cryptocurrencies like Bitcoin and Ethereum, which recorded a major price crash earlier in February.

CoinMarketCap’s data shows that the the altcoin’s price has fallen by 11.6% in just one week. This decline comes as the broader crypto market faces massive liquidations totaling hundreds of millions of dollars.

Featured image from Adobe Stock, chart from Tradingview.com

The frog-themed meme coin PEPE has surged 11% in the past 24 hours, significantly outpacing leading meme assets. 

While Dogecoin (DOGE) and Shiba Inu (SHIB) have managed modest gains of 3% and 1%, respectively, PEPE has soared by double digits and is looking to extend its rally.

Whales Fuel PEPE’s Surge

PEPE’s rally comes amid a trend of significant whale acquisitions, which have fueled increased demand and bullish momentum for the meme coin. 

In a March 12 post on X, on-chain sleuth Lookonchain noted that three whale wallets recently acquired 689.79 billion PEPE, valued at $5 million at current market prices, with all funds originating from Tornado Cash.

According to Lookonchain, the largest buyer, wallet 0x7A7D, spent 1,413.4 ETH ($2.72 million) for 437.7 billion PEPE, while 0x9212 and 0x7779 purchased 158.58 billion PEPE ($1 million) and 93.51 billion PEPE ($574,000), respectively. 

Although the move has sparked speculation about the source of these funds, it has also triggered a resurgence in new demand for the meme coin. As its price grows, its daily trading volume also rallies. Over the past 24 hours, volume has surged by 18%, totaling $1.05 billion at press time. 

When an asset’s price and trading volume surge simultaneously, it indicates strong market demand and increased buying activity, possibly driven by retail FOMO (fear of missing out) in PEPE’s case. This combination suggests bullish momentum in the meme coin’s market, signaling more gains if the trend continues.

Moreover, in the futures market, PEPE’s rising open interest highlights the capital inflow into it. As of this writing, the metric is at $120 million, rocketing 21% in the past 24 hours. 

When an asset’s open interest climbs, especially during a price rally, it indicates increased market participation and capital inflow. If macro factors remain favorable and market sentiment remains bullish, there is a strong likelihood of a sustained PEPE rally.

PEPE Bulls Are Back: Key Indicator Confirms Strength

PEPE’s Elder-Ray Index has returned a positive value for the first time since January 19. This confirms the bullish shift in investors’ sentiment toward the altcoin.

The indicator measures the strength of bulls and bears in the market by analyzing the relationship between an asset’s price and a moving average. 

When the Index is positive, it indicates that bulls are in control, suggesting upward momentum and potential price gains. If sustained, this trend could drive PEPE’s price toward $0.0000083. 

Conversely, if buying activity weakens, PEPE could break below the support at $0.0000062 and fall to $0.0000048.