Solana and XRP In Spotlight as Traders Take Billions In Profit

Solana (SOL) and the Ripple-backed XRP coin recently witnessed substantial profit-taking activities from short and long-term holders.

While the profit-taking puts pressure on prices, it could also unfold breakout potentials for both SOL and XRP.

Analysts have spotlighted bullish technical indicators that may ignite a rally in the price of Solana and XRP moving forward.

Solana and XRP Profit-Taking Trend

Onchain data analytics provider Glassnode revealed a notable trend of profit-taking among Solana and XRP investors.

Per the details, traders who have held SOL for more than a month amassed over $105 million in profit on August 17. This means the SOL investors sold their assets at a higher price than their purchase cost.

Glassnode noted that the August 17 profit-taking event marks the largest seen since early 2025. The event indicates a surge in selling activity, possibly driven by a price rally or sentiments among traders and investors.

Similar to Solana traders, long-term XRP holders experienced a surge in their realized profit. On July 24, profit-taking by longer-term XRP holders surged to $375 million.

This trend suggests a strong distribution similar to the December 2024 rally, according to Glassnode.

During the December 2024 rally, XRP price reached a new high of $2.7. This surge was largely driven by positive developments like the launch of Ripple USD (RLUSD) stablecoin at the time.

Likewise, the July 24 profit-taking followed a strong XRP rally. Notably, the Ripple-backed coin peaked at $3.64 in mid-July.

The long-term XRP holders possibly anticipated a correction after the $3.64 peak, hence the sell-off to take profits.

Can Solana See a Breakout at $2,500?

Back in Solana, the altcoin formed a bullish pattern on its weekly chart, called “cup and handle.”

This pattern may improve sentiment, as it has historically preceded major price increases.

Bitcoinsensus, a leading market data provider, targets SOL at $2,500, based on the bullish cup and handle pattern.

As of this writing, SOL price was valued at $183.9. Thus, for Solana to hit $2,500, it would have to increase by over 1,259% from current prices.

The estimated $1,259% potential increase makes the $2,500 SOL target quite ambitious, but it aligns with general forecast.

Meanwhile, the SOL price is recovering from its recent declines as it has jumped by 3.9% over the past 24 hours. Within the same period, the trading volume increased moderately by 9% to $6.1 billion.

Analysts previously forecasted that SOL could see a breakout around $520, following the formation of a previous cup and handle pattern.

This projection appears more feasible considering SOL’s current price.

The XRP Breakout Trend

Another crypto analyst, EGRAG CRYPTO, has also spotlighted a bullish pattern for XRP.  The analyst noted that XRP has formed a micro bull flag on its price chart.

A bull flag is formed in technical analysis when an asset moves in a strong upward trend followed by a consolidation. During the consolidation phase, the price action forms a pattern in the shape of a flag.

The “bull” element suggests that the asset price will continue rising once the consolidation phase is over. The consolidation may last only a few minutes or candlesticks in a micro bull flag.

The pattern is eventually completed when the price breaks above the upper trendline of the flag.

For XRP, the micro bull combined with a surge in volume signals the resumption of the uptrend.

A possible breakout would confirm that buyers have regained control, pushing the price to new highs. Traders are advised to place a long position when the price breaks above the upper trendline of the flag.