This week, there was a surge in volume for XRP and Solana because to the increased activity of meme coins on both chains.
As on-chain activity increased, the number of XRP holders reached 5.57 million.
A rise in open interest suggests fresh funding for XRP and Solana.
Rates of funding for both tokens indicate that traders in derivatives are anticipating more price rises.
The curiosity of crypto traders was piqued by Ripple's (XRP) 400% rise and Solana's (SOL) 40% gain in the previous 30 days. When Bitcoin's (BTC) supremacy begins to wane, a 90-day period known as the altcoin season begins, during which altcoins routinely outperform BTC.
It's altcoin season now, thanks to XRPLedger meme currencies like XRP God Candle (XGC), XRP Army (ARMY), The Dark Side of XRPL (VADER), Bull (BULL), and Solana meme coins including Dogwifhat (WIF), Bonk (BONK), Popcat (POPCAT), Peanut the Squirrel (PNUT), and Cat in a Dogs World (MEW).
Prices of XRP and Solana have risen this week, and on-chain indicators back that up.
Meme currencies like XRP and Solana are helping to drive more traffic.
In the last seven days, XRP and the Solana meme currency have seen a surge in popularity. Meme currencies that just debuted on the XRPLedger and are exchanged on the decentralized exchange platform Magnetic X have secured a total of 79,000 to 146,000 XRP on their chains.
This week, Santiment saw a surge in activity related to meme currencies, which is boosting the XRP and Solana ecosystems.
You can see that the measure is consistently growing—the total number of XRP holders grew by roughly 1.5% in the previous 30 days—in the figure below.
Gains for XRP and Solana are supported by open interest and financing rates.
Tokens' Open demand (OI) helps forecast spot market price movements by reflecting their liquidity and demand across derivatives exchanges. This week, the open interest (OOI) in XRP and SOL spiked and has remained above normal.
Traders are seen as being positive when they see price improvements in XRP and SOL, accompanied with increased open interest.
For the purpose of determining whether derivatives traders are bullish or bearish on a token, total funding rates are used. An upbeat and pessimistic outlook is reflected in positive funding rates. Coins like XRP and SOL have had positive total funding rates in the previous three weeks of November, which has contributed to their price growth.
Estimated price of XRP
Prior to price discovery, the XRP price may retest its January 2018 high of $3.40. From its November low of $0.5046 to its December 3 high of $2.9444, XRP's price action provides a useful benchmark for future price discovery.
Only 33.33 percent of the way to its all-time high in January 2018 has been passed by XRP. As a price discovery goal for XRP this cycle, the 161.80% Fibonacci retracement of the rise pegs the price at $4.4523.
When the MACD indicator's green histogram bars flash over the neutral line, it lends credence to a bullish argument.
Overvaluation of XRP is indicated by the Relative Strength Index (RSI), which traders interpret as a sell signal. It is important for XRP traders to be vigilant for any indication of a downturn in the cryptocurrency before increasing their position.
The 50% Fibonacci retracement level around $1.7245 might provide support for the cryptocurrency XRP in the event of a downturn.
Prediction of the Solana price
Between its all-time high of $264.39 and its August low of $110, Solana might find support between the 61.8% and 50% Fibonacci retracements. Two important levels of support are $205.41 and $187.20.
According to the technical indications, Solana is expected to have a short-term correction. MACD flashes red histogram bars under the neutral line, while RSI is sliding downwards, approaching neutral.
In order to detect a trend reversal, traders must keep an eye on the momentum indicators. The 161.80% Fibonacci retracement level, $359.80, is a potential target for a SOL rebound if the consolidation phase is gone and Solana's ascent restarts.
Both cryptocurrencies are still linked to Bitcoin, so if Bitcoin has a correction, it might lead to a decrease in their value. Whether or whether the price trend for both cryptocurrencies continues depends on Bitcoin's surge to $100,000 and beyond.
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