NAIROBI (CoinChapter.com)—The crypto market’s recent volatility has impacted XRP, Solana (SOL), and Pepe Coin (PEPE), with all three tokens facing price declines. Broader market conditions, including Bitcoin’s dip below $100K and heightened macroeconomic uncertainty, have further fueled the downturn.
XRP Slips Below $2.20 After Reaching Multi-Year Highs
Ripple’s XRP, which had recently surpassed $2.80—a multi-year high—has faced sharp declines. On Dec. 18, XRP fell below $2.30, and hours later, its valuation dipped under $2.20. As of writing, the token is trading at $2.23, marking a 6% daily decline.
XRP/USD 1-day price chart. Source: TradingView
XRP’s sell-off coincides with a broader market correction. The global crypto market cap has dropped 9% in the last 24 hours to $3.42 trillion, according to CoinGecko. XRP’s trajectory has also been influenced by market uncertainty stemming from the Federal Reserve’s hawkish stance and Bitcoin ETF outflows, which exceeded $670 million in a single day.
Despite the plunge, analysts like Crypto Bitlord remain optimistic, predicting XRP could surge to $5 in the coming months. Others, including Dark Defender and Armando Pantoja, have set price targets of $5.85 and $8.76, underscoring long-term bullish sentiment if the SEC withdraws its appeal in the Ripple case.
Solana Fights Back After Bearish Sentiment Takes Hold
Solana (SOL) has faced intense selling pressure after a brief breakout from a bull flag pattern earlier this month. The token is now trading at $179.43, down 7.34% on Dec. 20, as broader market conditions and declining Total Value Locked (TVL) weigh on sentiment.
SOL/USD 1-day price chart. Source. TradingView
The daily chart shows SOL approaching its ascending trendline support, with the RSI at 30.66 indicating oversold conditions. While this suggests the potential for a short-term bounce, the ADX at 27.85 points to fading bullish momentum, leaving SOL vulnerable.
DefiLlama data shows Solana’s TVL dropped 7% in a day, falling from $11.22 billion to $10.35 billion. Similar drops in the past have led to further price declines, raising concerns about a retest of the $121 support level.
Solana Total Value Locked (TVL). Source: Defillama
On-chain metrics show that traders remain cautiously optimistic, with Binance and Bybit leading open interest activity. A recovery above $201.8 could invalidate the bearish outlook, potentially pushing SOL to retest resistance at $230.
Pepe Coin Struggles Amid Broad Sell-Off
Pepe Coin (PEPE) is in freefall, dropping to $0.00001534 on Dec. 20, its lowest level since early December. The token has lost 30% in the past three days, breaking below its 50-day EMA at $0.00001902. It now eyes the 200-day EMA at $0.00001286 as critical support. The RSI at 34.62 signals oversold conditions, but selling pressure remains strong.
PEPE Coin 1-day price chart. Source: TradingView
High trading volume, exceeding $2.2 billion in 24 hours, underscores the intensity of the sell-off. Nansen data shows smart money traders reducing holdings, from 8 trillion tokens last month to 7.5 trillion, reflecting bearish sentiment.
Analysts like CyrilXBT highlight $0.0000200 as a recovery pivot, while Chandler Bing notes PEPE’s history of rebounding from steep corrections. If buyers defend key levels, PEPE may stabilize, but failure could lead to deeper losses.
XRP, SOL, and PEPE remain under pressure as macroeconomic factors and market sentiment weigh heavily on the crypto sector. However, technical indicators and long-term fundamentals suggest potential recovery opportunities for traders willing to weather the current volatility.
