The ongoing decline in the stock market weighs heavily on the crypto market. Altcoins like Solana and XRP have taken the brunt of the damage over the past few weeks, with their values cut in half after recent highs. Still, both the prices of SOL and XRP recently rebounded; markets show some positive signs.
On Tuesday, March 11, Solana and XRP recovered after a steep decline over the weekend. Solana traded at $127.23, up 6.24% over the day. At the same time, the XRP price was up 6.06%, reaching $2.18. The recovery came as the crypto markets showed resilience amid a stock market downturn.
The same day, the S&P 500 was down 0.76% to 5,572.07 amid ongoing fears over the impact of Donald Trump’s tariffs on major US trading partners. The resulting trade war can potentially significantly increase costs for both companies and consumers.
In particular, traders have expressed concern over Trump’s comments that the tariffs could cause some “disturbance” in the markets. At the same time, altcoins like Solana and XRP were also in decline, showing the interconnection between traditional and crypto markets.
What’s Next for Solana and XRP?
Still, Trump’s press secretary, Karoline Leavitt, later tempered his comments. She explained that Trump would take the stock market into account, “just like he did in his first term.” She also suggested that both Wall Street and Main Street should place their confidence in the president.
At the same time, there are signs that the stock and crypto markets are oversold. For one, the S&P 500 Relative Strength Index (RSI) is at its lowest point since October 2022. The economy was grappling with the Russian invasion of Ukraine and major supply chain disruptions at the time. This suggests that there is a potential for a rebound in the short term.
Coupled with the introduction of the Bitcoin strategic reserve bills in the US Congress, there is a bullish case for altcoins. Notably, the US government’s proposed purchase of 1 million Bitcoin would have a profound impact on altcoins like Solana (SOL) and XRP.
READ MORE: Senator Lummis Proposes 1 Million BTC Purchase in Revised Bill
