- Solana’s price strength contrasts with slowing network growth.
- XRP attracted inflows while most crypto funds saw withdrawals.
- Investors appear to be rotating selectively, not exiting the market.
Solana and XRP are moving against a cautious crypto backdrop, offering investors mixed but telling signals about where capital is flowing in early 2026. While Bitcoin and Ethereum remain largely range-bound amid macro uncertainty, select altcoins are showing resilience — though not without underlying risks.
Solana briefly climbed above $140 on Jan. 12, while XRP held positive territory even as digital asset funds suffered heavy weekly outflows. Together, the moves point to a market that isn’t fleeing crypto entirely, but is becoming more selective.
Solana Price Rebounds, but Network Data Raises Questions
Solana is trading near $140 after a 3% daily gain, supported by a sharp spike in trading activity. Volume surged more than 200% in 24 hours, reflecting renewed short-term interest as SOL approaches the $145 resistance level — a zone that has repeatedly stalled rallies.
Technically, momentum has improved. Analysts note that SOL is holding above key short-term exponential moving averages, a structure last seen during healthier market phases. The longer-term 200 EMA near $133 continues to act as rising support, suggesting dip buyers remain active.
However, the on-chain picture is less convincing. New wallet creation has dropped significantly since late 2024, and total value locked on Solana has fallen roughly 30% from its pre-crash peak. Past SOL rallies were typically backed by strong user growth and capital inflows, making the current divergence worth watching.
Without a recovery in network activity, analysts warn that SOL could face another rejection near $145, with downside risk toward the $130–$135 range.
XRP Attracts Inflows as Investors Turn Defensive
XRP has emerged as a rare bright spot in a difficult week for crypto funds. While the broader market saw $454 million in outflows, XRP-linked products recorded nearly $46 million in net inflows, according to CoinShares data.
This came as investors reduced exposure to Bitcoin and Ethereum, which suffered the largest withdrawals amid fading expectations for near-term U.S. rate cuts. The shift suggests a defensive rotation rather than a full exit from digital assets.
Still, XRP hasn’t been immune to volatility. The token fell earlier this month following the withdrawal of a major ETF filing, and U.S.-listed spot XRP ETFs recently posted their first net outflow after weeks of steady demand. As of writing, XRP trades near $2.03, modestly lower on the day.
Institutional Flows Highlight a Split Market
Regional data shows the divide clearly. U.S. investors led global outflows as bond yields rose, while Europe and Canada continued to add exposure. Assets like XRP and Solana benefited from this non-U.S. demand, reinforcing the idea of targeted risk-taking.
Solana ETFs, meanwhile, continue to see consistent inflows, with total net investments surpassing $800 million since launch — a sign that institutional interest hasn’t faded, even as retail activity slows.
Also Read: USD1 Ignites Solana DeFi Boom—Is This the Start of a New Liquidity Cycle?
Solana and XRP are outperforming a hesitant market, but for different reasons. Solana’s rally leans heavily on technical strength and institutional support, while XRP’s appeal lies in its defensive positioning during fund outflows. Whether these trends can sustain will depend less on short-term price action and more on whether underlying activity and macro conditions begin to align.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. CoinBrief.io is not responsible for any financial losses.
