Altcoin Momentum Cools as Solana and Ripple Retest Key Support Levels

After a strong close to 2025, the altcoin market has started the new year with dampened momentum. Prices have stopped pushing higher, and several of last year’s leaders are now sitting at levels that traders consider critical. Solana (SOL-USD) and Ripple (XRP-USD), two of the most influential names from the previous rally, are both leaning on support zones that could shape sentiment across the wider market.

So far, the pullback looks controlled rather than chaotic. Still, how these levels hold or fail will help determine whether the market is simply pausing or beginning to roll over.

Altcoin Momentum Cools

By the end of Q4 2025, optimism around altcoins was already well priced in. Positioning was crowded, expectations were high, and valuations reflected that confidence. A slowdown was always likely.

In recent weeks, capital has become more selective. Instead of flowing broadly across the market, money has concentrated in larger, more liquid tokens. Smaller, more speculative projects have struggled to attract follow-through, and the late-2025 “buy everything” mindset has faded.

Some investors are locking in profits after a strong run, while others are waiting for clearer signals from liquidity conditions and macro developments before adding risk. Even so, the broader backdrop remains more supportive than in past cycles. Expectations that monetary policy will be less restrictive than during earlier tightening phases have helped limit downside pressure, even as momentum cools.

Flows reflect that caution. Stablecoin balances are rising again, suggesting capital is waiting on the sidelines rather than leaving crypto altogether. What stands out is where that money is concentrating. Instead of chasing momentum across the board, it is gravitating toward established narratives such as major layer-1 networks and payment-focused tokens. That puts added attention on how leaders like Solana and Ripple behave here.

Solana Holds the $120 Line

Solana spent much of last year rebuilding confidence before delivering one of the strongest rallies among large-cap cryptocurrencies. After such a move, consolidation was expected. The price is now hovering around $120, a zone that has repeatedly attracted buyers.

Recent pullbacks have found demand in the low $120s, while rebounds have struggled to extend beyond the low to mid $140s. Rather than sharp selling, price action has compressed into a tighter range. That pattern usually signals uncertainty, not fear, especially after a sustained advance.

Volume during the latest decline has also been lighter than during the rally phase, a sign that selling pressure remains measured. That balance can change quickly if a widely watched level breaks, but for now, the tone remains orderly.

Most short-term speculators are focused on the $118-$124 range. A bounce from this zone, especially if supported by stronger spot demand and steadier futures positioning, would fit the idea of a routine reset within a broader uptrend. In that case, attention would likely return to higher levels, including the $150 area that remains on many traders’ radar.

If $120 fails to hold, sentiment could shift quickly. A sustained break below that level would raise questions about how much of last year’s rally still needs to unwind. Some longer-term views suggest that, under enough pressure, Solana could revisit much lower prices, potentially in the $50-$70 range. That remains a secondary scenario for now, but it would gain traction if support gives way.

XRP Tests Conviction Around $2

Ripple faces a similar test, though its setup reflects a different narrative. Its rally into early 2026 leaned more on improving fundamentals than speculation. Payment adoption, reduced legal uncertainty, and rising interest in exchange-traded products linked to the token all played a role.

That rally has stalled around the $2 level, which has become a focal point for traders. On the daily chart, XRP has pulled back into a cluster of support near $2.09, $2.00, and slightly below, where horizontal levels align with key moving averages.

Price has tested this zone several times, and each dip has drawn a buying response. Those reactions have been measured rather than aggressive, but they have been consistent enough to keep the structure intact so far.

If XRP can hold above $2 and push back through nearby resistance between $2.11 and $2.28, the broader bullish setup remains in place. Under steadier market conditions, some traders still see room for a gradual move toward the upper $2 range, including levels near $2.90.

The risk is that repeated tests weaken support. XRP has already logged several sharp down days and slipped below some longer-term trend measures. A clean break below $2 would likely change sentiment quickly and open the door to a deeper retracement toward the mid $1 range as investors reassess how much optimism is priced in.

What Recent Price Action Means for Altcoins

Solana and XRP matter beyond their individual charts. Together, they act as signals for the large-cap altcoin space. Solana represents the high-throughput layer-1 trade, while XRP reflects payments adoption and growing interest from more traditional investors.

If both tokens stabilize and bounce from current levels, it would reinforce the idea that the recent slowdown is a pause rather than a reversal. In that environment, capital could rotate back into other large-cap altcoins tied to themes such as decentralized finance, artificial intelligence, and established layer 1 ecosystems.

If support fails in one or both assets, especially alongside heavier selling and weaker on-chain signals, the tone shifts. That outcome would suggest a more defensive market, favoring Bitcoin, stablecoins, and a narrow group of resilient names while the broader altcoin market remains under pressure.

For now, the market is still deciding. How Solana trades around $120 and whether XRP can defend the $2 area in the weeks ahead should offer clearer answers about whether altcoin momentum is simply cooling or starting to fade.