Several altcoins recorded massive gains on the 19th of August, driven by a Bitcoin [BTC]-led rally that lifted the entire crypto market.
In particular, Solana [SOL] and Ripple [XRP] fronted a 10% pump at press time. Surprisingly, these two mega-cap altcoins had different market structures on the price charts, suggesting varied opportunities if the momentum extends.
Will XRP offer more gains than SOL?
On the daily price charts, SOL reclaimed the 200-day Moving Average (MA blue) for the first time since last November. It also surged above the July high of $84, effectively hitting a 3-month high of $87.20. Put differently, SOL flipped bullish.
However, a true breakout from its 2026 price range of $76-$98 could confirm further sustained upward momentum.
As such, if SOL flips the mid-range level of $88 into strong support and jumps above $100, much of the 2025 losses could be reversed. An extra 16% could be feasible if SOL bulls hit the range high of $98.
But with the RSI flashing an overbought signal, a cool-off below the mid-range of $88 could not be ruled out.
For XRP, however, the structure was still firmly bearish on the daily charts. Despite surging 10% from $1.00 to $1.10, it was still below its 200-day MA (at $1.27).
Given that the RSI indicator was yet to flash an overheated market, there was still room to hit the 200-day MA level. If so, an extra 17.5% upside potential for XRP could be on the cards.
However, the bullish scenario holds only if XRP defends the July support zone of $1.0 (white). A crack below the zone would reinforce sellers’ leverage and invalidate the bullish outlook.
Catalysts for SOL and XRP pump
First, the mid-week pump was triggered by a Bitcoin short-squeeze following the U.S. Treasury’s planned intervention in the bond market. Similarly, SOL saw nearly $100 million in short liquidations in the past 24 hours.
For its part, XRP only recorded $16.5 million worth of wrecked leveraged short positions. Collectively, these offered the fuel for Wednesday’s upside move targeting the leveraged bears (bright yellow zones during the rally).
Spot demand, especially from U.S. SOL and XRP ETFs, also supported the rally. The products saw $2.1 million and $2.35 million in daily net inflows, respectively.
The next move depends on BTC’s direction, and next week’s PCE (Personal Consumption Expenditures) Price Index data could become a crucial catalyst. A hotter-than-expected PCE data could reduce Fed rate cut expectations in September due to stubborn inflation.
On the contrary, a cooler PCE could boost risk-on sentiment and crypto market momentum.
Final Summary
- SOL and XRP exploded 10% due to a short-squeeze and broader market recovery.
- XRP had more room for an extra 17.5% rally if Fed rate expectations favor bulls.
