Crypto Market Down: Why XRP, Chainlink, and Solana Prices Are Rising?

Amid the crypto market crash, XRP, LINK, and Solana prices are gaining strength with rising investor interest & falling BTC-alt correlation.
By Pooja Khardia
Published: 19 Dec, 2024 | 01:19:43 PM GMT
Crypto market led Solana gains today

Highlights

  • The Bitcoin price consolidation created the crypto market crash, dragging the altcoins into a dip.
  • Although XRP, Chainlink, and Solana prices are falling, their increased trading volumes confirm strong investor interest.
  • The altcoin correlation to BTC hints at correction and market reset in the next 1-2 weeks.

The crypto market experienced a significant downtrend recently, as the Bitcoin price fell below $100,000. Although BTC has recovered from that dip, the impact of the downfall is still visible in the remaining cryptos. However, altcoins like XRP, Chainlink, and Solana price recoveries defy the odds, and here is why.

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Crypto Market Downtrend or Altcoin Season?

Despite the crypto market downtrend, Cole Garner’s analysis presents a new insight into the altcoin season. According to Cole, altcoins’ correlation to BTC has hit its lowest point in 12 months, which happens during the bull cycle resets. This paves the way for altcoins to move independently from Bitcoin’s price movements. Eventually, this indicates more recoveries and an upcoming altcoins rally.

More importantly, he claimed that the major correction and reset could happen within the next 1-2 weeks. At the same time, another analyst presented the possibility of altcoin setting their dominance near Trump’s inauguration, as Bitcoin would face a 20-25% correction, giving the perfect BTC buying opportunity at a low. Additionally, this will present the space and opportunity for altcoins like Ethereum and Solana price to rally.

altcoin season

Although the Bitcoin price consolidation heavily impacted the altcoin, XRP, Chainlink, and Solana prices have made impressive recoveries since the drop. This has increased the altcoin season’s expectations for users who feared the ASI drop from 65 to 53, as closer to 50 decreases the chances of the altcoin’s domination.

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What’s Behind XRP, Chainlink, and Solana Price Recovery?

Ever since the drop, XRP has shown the biggest recovery, rising almost 8% on the charts. With that, it is currently trading at $2.41 after regaining strength, with the trading volume surging 34% to $23.15B. Moreover, the technical charts indicate buyer dominance, fueling the early recovery of the XRP amid the crypto market crash. Interestingly, the same is true with Chainlink, currently trading at $25.28 after a 4.3% surge from the drop, as there is buyer dominance, with trading volume rising 48% to $2.18B.

That’s because Chainlink’s recent performance boosted its demand, where the analysts believe the LINK price could hit $30 over the holidays.

XRP, Chainlink and Solana Price Recovery

Lastly, the Solana price has jumped 2.68% from $200 to $210 in the buyer’s presence, leading to TV rising 6% to $7.12B. It can go even higher with the building anticipation around the altcoin season, as the correlation heatmap charts showcase a decoupling trend, which means that Solana and the rest of the altcoins are moving independently of the Bitcoin price action. Additionally, the surge in TVs of all three assets confirms the investors’ shifting interest to high-potential tokens as the market restructures.

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What’s Next?

The investors were already prepared for the Bitcoin price consolidation if the FEDs implemented a 25bps rate cut. Moments after the announcement, the crypto market downtrend began. However, at the same time, it revealed the timeline for the altcoins season as altcoins’ correlation to BTC hit a 12-month low, which is an indication of the bull cycle reset. The crypto analyst, Cole Garner, has concluded that this shift will be visible in the next 1-2 weeks.

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Pooja Khardia
Pooja Khardia is a seasoned crypto content writer with 6+ years of experience in writing, including in blockchain, cryptocurrency, DeFi, and digital finance reporting. In her adventure journey, she is currently working with CoinGape Media and leading their Trending Section. Here, she uses her expertise to deliver analytics, market insights, price predictions, and information on what’s trending in the crypto space, aiming to keep the crypto and web3 community updated with market trends and important insights. Known for a user-centric and straightforward writing style, Pooja is passionate about making crypto easy and accessible. Her writing blends market research with storytelling, helping readers stay ahead in a fast-paced industry. When not behind the keyboard, Pooja embraces her creative side through drawing and crafting. Connect with Pooja on LinkedIn or X.
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