Solana Targets $420, XRP and AAVE Show Strong Breakout Potential When Markets Recover

The market is a sea of red on Sunday following the Trump Trade War tariffs. But what if the market is overreacting? Once things calm down, there will be some fast recoveries, for traders who can stomach short term pain, long term gains are ahead.

A sea of red in the alt coin markets, Source CoinmarketCap

Top Cryptocurrencies to Watch: Solana Aiming for $420, XRP and AAVE Set for Breakouts

Solana is looking to target $420 and XRP is approaching a demand zone that will decide its next move.

AAVE is showing strength and if momentum continues it could hit $380. With whale transactions and market trends playing a big role, traders are watching these assets for trading opportunities. But first, we have to get through the current dump.

Solana: SOL to Hit $420 If Market Rebounds?

Once the dump is over, Solana (SOL) may break out, XRP and AAVE could follow. SOL could hit $420, according to analysts, with support and resistance deciding the next big move. Solana has experienced fluctuations, reflecting the broader market’s movement.

.Solana weekly price chart. Source: Brave New Coin

The token’s price has seen retracements similar to previous rally patterns, and analysts are closely watching the 50% Fibonacci retracement zone. If SOL holds above this level, it could trigger a push toward the -1 Fibonacci extension, which aligns with the projected $420 price target.

Source: X

Adding to the speculation, Whale Alert reported that a transaction involving 694,746 SOL, valued at $165.25 million, took place between two unidentified wallets. Such large movements often indicate shifts in market sentiment, potentially signaling an upcoming rally.

According to the latest data, Solana is trading at around $235.26, reflecting a slight decline. The primary resistance level at $260 remains a crucial hurdle. If SOL breaks past this level, momentum could carry the price toward $300 and beyond. Conversely, failure to hold above $235 may result in a pullback to $200.

SOL/USD daily chart. Source: Trading View

Technical indicators such as the Relative Strength Index (RSI) at 42 indicate neutral conditions, while the Moving Average Convergence Divergence (MACD) shows a slight bullish crossover. Increased trading volume could further validate a strong move in either direction.

XRP Eyes New Heights: Set to Challenge $3.40

XRP has gotten a lot of attention lately as it broke past its previous monthly high of $2.07, up over 40%. This is mostly due to growing investor confidence, with speculations of XRP being added to the US strategic reserve and Ripple expanding in the digital payments space. Despite these positives, XRP faced resistance at the all-time high of $3.40, and has now dipped below $3.

XRP 24-hour price action. Source: XRPLX via Brave New Coin

According to KLCTraders on TradingView, XRP had been above the $3 mark since mid-January but struggling to break above $3.40. This stagnation has investors worried about the current pullback to $2.95 before XRP can gather momentum for the next move up.

The daily SMA 50 has been strong support since November 2024 and is currently at $2.6, so it will be a buffer against any declines and the key areas where XRP’s price action will play out.

On-chain data from CoinGecko shows XRP is up 511% year over year and 246% in Q4 2024 alone. It’s been bullish since Ripple won the lawsuit against the SEC in 2023 and investors are coming back in.

XRP is being watched closely as Ripple pushes for a more diversified crypto ecosystem, and retail is coming back in. The next few weeks are big for XRP as it tests resistance levels that could lead to big moves up or down.

Attorney John Deaton recently spoke about XRP on the Thinking Crypto Podcast with Tony Edward. He talked about the SEC approving XRP ETFs and compared it to the success of Bitcoin spot ETFs, specifically BlackRock’s iShares Bitcoin ETF. That ETF drew more money in its first year than gold ETFs did in 20 years.

Deaton said XRP could surpass Ethereum in market cap and projected a price target of around $8. He said it’s because Wall Street loves cryptocurrencies and it will be like the success of Bitcoin ETFs. XRP is currently the 3rd largest crypto by market cap, so if it reaches that it would not only change its market position but also challenge Ethereum’s long-held 2nd position.

This is echoed by other big names in the crypto space, Peter Brandt and Ben Armstrong (BitBoy), who are also calling for a big increase in XRP’s market cap, up to $22 per token.

Watch XRP Price Analysis

AAVE Price Action Signals Potential 30% Upside

AAVE, the token of the DeFi platform Aave, is looking bullish. It has held above $285 for a while now, a level that has always resulted in price reversals.

Currently trading at $300.50, AAVE is down 9% in the last 24 hours and 12% in volume. If it holds above $285, it could still go up 30% to $380.

AAVE weekly price action. Source: Brave New Coin

On-chain data shows $2.5 million AAVE tokens were removed from exchanges which means accumulation by long-term holders. The long/Short Ratio is 1.14 which means traders are very bullish despite the dump.

Historical patterns show AAVE is forming a double bottom setup which usually precedes big moves. If it holds above $285 it could go to $380 and beyond.

Will AAVE Repeat Its Historic 6,400% Rally?

Crypto analysts have drawn comparisons between AAVE’s current price action and its June 2020 breakout, which led to an explosive 6,400% surge. At present, the token is approaching a key resistance trendline, a level that previously marked the beginning of its historic rally.

Source:X

The TD Sequential is signaling a reversal. If AAVE breaks above this level of resistance, it could go to $3,500 long term. If it doesn’t break out, it could pull back to $160 or $100.

Market Outlook: What’s next for SOL, XRP, AAVE?

The market has dumped, traders are waiting for the reversal, SOL, XRP and AAVE are looking to break out. Solana’s price action is all about breaking $260. If it does, it could go to $420. XRP’s move is dependent on how it reacts to this liquidity zone, AAVE’s bullishness could take it to $380.