Solana has posted a 7% increase in the past 24 hours, aligning with the broader market’s recovery. While this surge may appear promising, technical and on-chain data suggest that the coin could face significant resistance. 

Despite the recent rally, SOL risks shedding these gains and could fall below the $100 mark if bearish pressures dominate.

Solana’s Price Surge Lacks Momentum

While impressive, SOL’s current rally largely reflects the broader market trend rather than demand for the altcoin. The bearish divergence formed by its Chaikin Money Flow (CMF) shows this.

At press time, SOL’s CMF is below the zero line at -0.09, indicating a lack of buying momentum among SOL market participants. 

The CMF indicator measures money flow into and out of an asset.  A bearish divergence emerges when the CMF is negative while the price is climbing. The divergence signals that despite the upward movement, there is more selling pressure than buying interest, suggesting weak bullish momentum. 

This indicates that SOL’s current price rally may lack sustainability and could be at risk of reversing or stalling as new demand remains scarce. 

Further, the coin’s long/short ratio highlights that its market participants lean more heavily toward the short side. At press time, this stands at 0.97.

The long/short ratio measures the balance between long positions (betting on price increases) and short positions (betting on price decreases) in the market. When the ratio is below zero like this, it indicates that there are more short positions than long positions.

This suggests that bearish sentiment remains dominant in the SOL market, and its futures traders are anticipating a decline in the asset’s price.

Solana in Crucial Zone: Will $95 Hold or Lead to a Steeper Decline?

During Monday’s intraday trading session, SOL plummeted to a 12-month low of $95.26. Although it has since rebounded to trade at $108.77 at press time, the lingering bearish bias leaves the coin at risk of shedding these gains.

If SOL witnesses a pullback, it could break below the support at $107.88. If it falls back below $100, the coin’s price could fall toward $79.

On the other hand, if the uptrend continues, backed by a surge in new demand, SOL’s price could breach the resistance at $111.06 and climb toward $130.82.

Crypto and TradFi markets had a strong opening today, as Bitcoin briefly jumped 5% due to optimism about a tariff deal. China and institutional investors in the US wish to avoid a trade war if possible.

Despite these encouraging signs, no deal has actually been reached, and Bitcoin also suffered subsequent losses. The whole market is in a state of flux until the situation becomes more clear.

How Will Bitcoin Perform Under Tariffs?

The crypto markets are full of fear right now, and it’s difficult to determine a safe bet moving forward. Since the market suffered huge liquidations yesterday, it opened with cautious optimism today.

This trend was particularly influenced by Bitcoin, which briefly jumped around 5% due to hopes about a potential deal on Trump’s tariffs.

The price of Bitcoin has fluctuated wildly due to the tariffs as speculation about a sell-off increases. However, the whole market is in a chaotic state right now.

Today, the Dow Jones Industrial Average surged 1,285 points, or 3.4%, while the S&P 500 and Nasdaq Composite both jumped 3.4% and 3.3%, respectively. Nonetheless, hundreds of stocks have fallen 20% or more.

Meanwhile, Bitcoin has a few advantages that can protect it from tariff volatility. For example, a recent report from Binance Research claims that the least risky cryptoassets are the most insulated from drops.

This includes RWAs and centralized exchanges, but Bitcoin is a close third.

Furthermore, the markets are very optimistic about a deal to avoid the tariffs. Yesterday, rumors of a pause triggered a trillion-dollar rally, highlighting traders’ desperation for good news.

Despite the retaliatory tariffs, China is similarly eager to avoid a full-blown trade war with the US. Trump claimed that he is making progress with China and South Korea, fueling optimism.

Nonetheless, it’s important not to overstate Bitcoin’s chances of success under tariffs. Despite the hopes on both sides of the Pacific, China confirmed that it’s prepared to fight a trade war if Trump forces its hand.

This might explain Bitcoin’s price drops despite its strong performance since yesterday. Ultimately, all we can do is wait and hope.

Ripple Labs has announced a major acquisition to shock the market out of an otherwise dreadful week. Taking to X (formerly Twitter), the crypto firm announced that it has acquired Hidden Road, a brokerage, clearing, and financing firm as it moves forward in its mission to become the leader for institutional investors moving into the digital assets space.

Ripple Acquires Hidden Road For $1.25 Billion

The Tuesday announcement by Ripple has further solidified the mission that the crypto firm has long put forward, and that is to provide instant and quick transfer of value for traditional and institutional investors coming into the digital assets space.

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As CEO Brad Garlinghouse explained in a separate X post, the decision to acquire Hidden Road for $1.25 billion comes after a long-standing customer relationship with the company. Garlinghouse revealed that Ripple understands the breadth of Hidden Road’s expertise, making it a prime candidate for the acquisition.

The integration of the XRP Ledger by Hidden Road will allow for cheap and fast movement of value to the brokerage’s customers, which moves over $3 trillion annually. A portion of this massive value is expected to move through the ledger, as well as using the RLUSD stablecoin as collateral for brokerage services.

Additionally, Hidden Road will be able to expand its capacity for value transfer, allowing Ripple to process even more volume. “With this deal and the backing of Ripple’s significant balance sheet, Hidden Road will exponentially expand its capacity to service its pipeline and become the largest non-bank prime broker globally,” Garlinghouse’s post read.

This acquisition comes after Ripple acquired Standard Custody back in February 2024. Standard Custody provided an online platform offering clients digital asset custody solutions, enabling Ripple to move into the custody market as well.

XRP Price Responds

Despite the Ripple announcement, the XRP price has remained muted as it continues to struggle below $2, which has since turned to resistance. At the time of writing, XRP is still holding at $1.96, despite its almost 10% in the last 24 hours.

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According to data from Coinmarketcap, the XRP daily trading volume has seen a notable decline, dropping approximately 24% in the last day. This suggests a decline in participation from investors, due to the bearish headwinds that continue to blow through the crypto market.

A recovery from here is highly dependent on Bitcoin, which continues to dominate the market and lead the charge.

Chart from Tradingview.com