Is XRP ready to close the gap against Solana?

• Solana’s relative strength shone through as it nearly doubled in value against XRP
• The SOL/XRP trading pair now faces a key technical resistance on the charts

Over the past two months, Solana [SOL] has clearly taken the upper hand over XRP, steadily outperforming it in relative strength.  

If you’ve been holding SOL since early April, you’ve seen your investment nearly double – Up about 90%. Meanwhile, XRP holders enjoyed a steadier climb, with a 46.5% ROI.

The SOL/XRP ratio backs up this story, jumping almost 40% to hit $76.01 at press time. This implied that it takes 76.01 XRP to buy one SOL at the press time SOL/XRP rate. 

Not surprisingly, users have been leaning more towards Solana. Especially since it has seen a nearly 12% monthly jump in daily active addresses, while XRP’s dipped by 6.8%. At the time of writing, the pair seemed to be bumping up against a familiar technical barrier. 

Source: TradingView (SOL/XRP)

After this sharp uptick, the ratio has been approaching its mid-February resistance levels. Back then, XRP was trading at $2.34 before rocketing by 21% in a week to $2.83 on 15 February.

That surge triggered SOL/XRP to tumble by a brutal 25% in under ten days.

Now, the real puzzle – Was Solana’s undervaluation the catalyst that funnelled capital into XRP? Or did XRP’s own buying pressure and market strength drive that breakout independently?

Solana’s bounce-back – A blueprint for XRP’s next move

Solana entered Q2 riding the comeback trail after a rough Q1, one that earned it the “worst performing asset” crown among high-caps.

SOL plunged to a multi-year low of $95 on 8 April, wiping out roughly 35% of its value from its $190 open. On the contrary, XRP held its ground, closing Q1 with modest 2.45% gains from $2.08.

Clearly, XRP benefitted from the rotation as traders sought safer bets.

Source: TradingView (SOL/USDT)

In fact, Solana was so oversold that it set itself up for a serious comeback. Now, halfway through Q2, it has already surged by nearly 90%. Overheating? Not quite yet.

Open Interest (OI) seemed to tell us a similar story. At press time, SOL’s OI surged by 4.45% to $7.4 billion, signaling strong market conviction, while XRP’s OI lagged at a mere 2.01%. If this trend keeps up, Solana could keep pulling ahead in the race for investor attention. 

XRP, on the other hand, might need a bit of a reset – A healthy dip to shake off some of that overvaluation and get investors interested again.

History shows that sometimes, you need a good “dip” to set the stage for a fresh rally. So, maybe XRP’s next big move depends on hitting that reset button first.