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

World Liberty Financial (WLF), a decentralized finance (DeFi) project backed by the Trump family, has successfully sold 99.3% of its recently issued 5 billion WLFI tokens. 

The tokens went on sale on January 20, following a surge in demand after the initial public sale.

WLFI Token Achieves Major Milestone

According to the data on the project’s official website, World Liberty Financial has now sold a total of 24.97 billion WLFI tokens out of a 25 billion token supply allocated for public sale.

For context, the total supply of WLFI tokens is 100 billion, with an initial allocation of 20 billion tokens designated for the first public sale. This sale commenced on October 15, 2024, with the token priced at $0.015. Furthermore, the project restricted access to individuals who qualified through a whitelist.

The initial target for the WLFI token sale was set at $300 million. Nonetheless, weak demand in the early stages led to a drastic reduction of the presale target to $30 million.

Despite the initial setback, the tides shifted after Official Trump (TRUMP) and Melania Meme (MELANIA) meme coins were launched. This launch sparked renewed interest in World Liberty Financial, leading to a surge in demand for WLFI tokens.

By January 20, World Liberty Financial had completed its initial token sale, selling 20% of its total token supply. However, seeing the surge in demand, the project released an additional 5% of its token supply at a price of $0.05 per token.

“An additional 5% of our token supply is now available to purchase on our website. We appreciate the overwhelming support and look forward to welcoming so many new people to our community!” the project posted on X.

At the time of writing, only 34.6 million tokens of the 5 billion public sale allocation remain available. 

The WLFI token’s primary purpose is governance within the World Liberty Financial Protocol. It allows token holders to propose, discuss, and vote on key protocol decisions. This gives token owners an equal voice in shaping the platform’s development, ensuring fair and democratic changes to its ecosystem.

As an added measure, the tokens will remain non-transferable for the first 12 months post-launch. Moreover, any community-approved changes to this restriction will not take effect until the one-year period concludes.

The milestone comes shortly after World Liberty Financial announced a partnership with Sui (SUI). The aim of this collaboration is to explore opportunities in DeFi. It will also integrate Sui’s technology into WLFI’s token reserve, “Macro Strategy,” supporting leading DeFi projects.