Solana and XRP See Double-Digit Declines as Trump Makes Key Tariff Announcements

Bitcoin's decline dragged down most altcoins as crypto traders assessed developments in artificial intelligence and the ETF hype surrounding Solana and XRP.

Solana (SOL) and XRP (XRP) saw nearly double-digit declines in their prices on the weekly timeframe as U.S. President Donald Trump announced key tariff measures.

Bitcoin’s decline dragged down most altcoins as crypto traders assessed developments in artificial intelligence and the ETF hype surrounding Solana and XRP.

Solana ecosystem metrics and growth

On-chain metrics tracking the activity, participation, and relevance of the Solana blockchain among traders show a decline across all three factors. The 7-day moving average of active addresses on the network is trending downward, as seen in the chart below.

A reduction in active addresses signals declining user engagement, which could negatively impact fees collected and overall protocol revenue.

The number of new addresses is also in decline, indicating reduced participation from traders. Combined with a drop in the total value of assets locked, this highlights Solana’s struggle to maintain relevance and compete with other blockchains.

DeFiLlama data shows that Solana’s TVL has dropped nearly 16% from its January 20 peak of $12.1 billion to $10.227 billion. TVL is considered a key indicator of investor and developer interest in a blockchain.

Despite the decline, SOL’s TVL remains above the average level observed in 2024.

Santiment data shows a steady decline in open interest and volume, while funding rates fluctuate between negative and positive. This suggests derivatives traders remain undecided on Solana’s price direction, even as SOL experiences a sharp drop.

XRP ecosystem updates, lawsuit and Trump effect

XRP price fell 16% over the past week, according to TradingView data. This decline is largely attributed to a broader market correction, with Bitcoin’s drop dragging altcoins lower amid concerns over inflationary pressures.

President Trump announced new tariffs on Canada, Mexico, and China, fueling fears of rising inflation while the U.S. Federal Reserve remains hesitant to cut interest rates in 2025.

Ripple’s Chief Technology Officer (CTO) Stuart Alderoty, expressed confidence in the new administration under Trump and expects a resolution to the U.S. Securities and Exchange Commission’s (SEC) lawsuit against Ripple.

Throughout the former administration's War on Crypto, Commissioner Peirce remained a steady voice for regulatory sanity. Today's memo is another rapid step toward turning the page on the mess we all inherited (and suffered through). https://t.co/IqdmefhgyX

CTO Alderoty is optimistic that Trump’s new crypto task force lead SEC’s Hester Peirce, could pave the way for positive regulation. This could help resolve the conflict between the U.S. financial regulator and the cross-border payment firm Ripple.

As traders digest the news of the trade war, XRP price outlook remains negative, as it does for the rest of the altcoins in the top 30 tokens ranked by market capitalization.

Solana and XRP derivatives and on-chain analysis

Derivatives data from Coinglass shows that over $332 million in crypto derivatives were liquidated in the past 24 hours. More than $11 million in Solana derivatives positions were wiped out, with bullish bets suffering the most compared to bearish positions.

XRP also saw a significant increase in options volume and open interest, reflecting the net value of all outstanding derivatives contracts. According to Coinglass data, over $14 million in derivatives positions were liquidated amid the market-wide correction.

On-chain data for XRP mirrors Solana’s trends, with total open interest and traded volume declining over the past week. This is reflected in the spot market, where XRP prices continue to drop. Funding rates have remained negative for two consecutive days, suggesting derivatives traders are turning increasingly bearish.

SOL and XRP technical analysis and price targets

Solana maintains its long-term upward trend even as SOL consolidates near key support above the $200 level. SOL could find support in the two imbalance zones between $190.11 and $198.47 and $169.39 to $185.84, as seen on the daily price chart on Binance.

Solana faces resistance at $218.90, the lower boundary of the imbalance zone in the chart below.

Technical indicators such as the relative strength index and moving average convergence/divergence support a bearish outlook. The RSI is sloping downward at 42, while the MACD displays red histogram bars below the neutral line, signaling negative underlying momentum.

XRP is consolidating close to support at $2.3699, a key level for the altcoin. XRP could find support in the FVG between $2.3699 and $2.4700. Technical indicators on the daily timeframe show similar bearish outlook as for Solana.

RSI is sloping downwards and reads 38 and MACD shows negative underlying momentum in XRP price trend