Traders Shift Focus to XRP and SOL as Bitcoin Pauses Near All-Time Highs
As bitcoin hovers just below its record levels, traders are increasingly rotating into major altcoins like XRP and Solana (SOL), eyeing further upside amid a backdrop of improving regulatory clarity and institutional interest.
Bitcoin (BTC) briefly touched new highs earlier this week and was trading just under $111,000 during early Friday trading in Asia, cooling off slightly as investors locked in profits after the recent surge. Meanwhile, altcoins picked up the slack: Cardano (ADA), Dogecoin (DOGE), and SOL gained up to 4%, while Ethereum (ETH), XRP, and BNB posted smaller increases of around 1.5%.
The CoinDesk 20 Index (CD20), which tracks the performance of the largest liquid digital assets, rose 1.2% over the past 24 hours, suggesting broad-based momentum across major tokens.
Bitget Research’s chief analyst Ryan Lee noted that a decline in bitcoin dominance could signal the beginning of a new altcoin season, with XRP and SOL positioned as frontrunners. He pointed to XRP’s favorable technical setup — including a weekly golden cross against BTC and the recent resolution of the Ripple-SEC lawsuit — as supportive of a medium-term rally that could send the token to $3–$8.
SOL, Lee added, could push toward $220–$300 if speculation around a potential exchange-traded fund (ETF) listing builds, while ADA might aim for a breakout between $1 and $3.
Meanwhile, Singapore-based trading firm QCP Capital remarked that the current bitcoin rally appears more fundamentally grounded compared to previous cycles, citing reduced speculative froth and stronger underlying demand. The firm noted that profit-taking after BTC’s recent high was short-lived, with buyers quickly stepping back in.
However, QCP cautioned that macroeconomic risks still loom — including renewed tariff disputes, rising U.S. bond yields, and dollar strength — all of which could heighten volatility, particularly in altcoin markets. They advised investors to concentrate on assets with compelling fundamentals and regulatory tailwinds.
Alex Kuptsikevich, senior market analyst at FxPro, added that bitcoin’s sentiment index is nearing “extreme greed” territory, indicating that bullish momentum may have more room to run — at least in the short term.
