XRP, SOL, DOGE Bear Market signals! Perplexity AI predicts a major crash by the end of the year.

Perplexity AI has issued a signal that if the current trend continues, XRP, SOL, and DOGE may experience a significant crash by the end of the year. XRP may fall from the current 2 dollars to 1 dollar, SOL may only slightly rise from 3 dollars to 135 dollars, and DOGE may drop to 0.11 dollars.

Current Status of the Bear Market in the Cryptocurrency Market and Perplexity AI Analysis Framework

There is no doubt that cryptocurrencies are currently in a bear market; however, Perplexity AI predicts that the trends of XRP, SOL, and DOGE may change in any direction. Perplexity AI is one of the main competitors of ChatGPT, known for its unique technological architecture that combines search engines and generative AI, and its predictive model integrates real-time market data, technical analysis, and fundamental factors.

In the past month, the cryptocurrency market has experienced multiple sharp declines due to the market selling off excessive leverage and speculative behavior. Currently, the trading price of Bitcoin has fallen to a six-month low, below $87,000. This systemic selling pressure has caused a chain reaction affecting all altcoins, with XRP, SOL, and DOGE not spared. A large number of leveraged positions have been forcibly liquidated, and the Fear and Greed Index has dropped into the extreme fear zone, significantly reducing market participation.

However, there is still some hope. As a technology, cryptocurrency is sure to exist in the long term, with XRP, SOL, and DOGE all proving their lasting vitality. XRP has real-world application scenarios for cross-border payments and Ripple's enterprise-level collaboration network, SOL is a representative of high-performance smart contract platforms, and DOGE has the strongest community culture and an increasing number of payment applications. Below are the possible development directions of the scenarios predicted by Perplexity AI before Christmas.

XRP Bear Market Scenario: 50% Fall to 1 USD

(Source: Trading View)

The model from Perplexity AI indicates that Ripple's XRP could fall to $1 by Christmas, which means its price will decrease by 50% from the current level of around $2. This would be a shocking reversal for XRP. After Ripple won a significant lawsuit against the U.S. Securities and Exchange Commission, XRP reached a seven-year high of $3.65 in July. Over the past 12 months, XRP's price has increased by 81%, outperforming Bitcoin and Ethereum.

From a technical perspective, XRP has been in a narrow consolidation range since mid-year, forming multiple bullish flag patterns, but has yet to break upward. Its Relative Strength Index (RSI) hovers around 31, near the oversold region, indicating that the token is at the bottom of a significant sell-off. From this angle, XRP may be experiencing the last wave of panic selling, after which a technical rebound may occur.

However, if the current downtrend continues and the support level of $2 is broken, the next major support level is indeed around $1. This price level is an important support area for XRP at the beginning of 2024, and it is also a psychological barrier. A fall to $1 would cause XRP to give back most of its gains in 2024, severely impacting investor confidence.

Nevertheless, Perplexity has made a more optimistic prediction. The approval of a spot XRP ETF, collaborations with major banks, or the introduction of new policies in the United States could all trigger a significant pump in XRP prices. These catalysts are expected to push XRP to reach $5 before 2026. Several asset management companies have applied for a spot XRP ETF, and if approved, it will inject institutional-level capital flow into XRP. Furthermore, Ripple continues to expand its collaborations with central banks and large financial institutions, and if a major partnership is announced, it could swiftly reverse market sentiment.

XRP Dual Scenario Forecast

Bear Market Path: After breaking through the $2 support, it aims directly at $1 (-50%), RSI enters deep oversold territory.

Bull Market Path: ETF approval or favorable policies drive a breakthrough of 3.65 USD, target 5 USD in 2026 (+150%)

SOL only pumped 3 dollars showing market cautious optimism

(Source: Trading View)

Solana (SOL) remains one of the most active blockchains in 2025, with a total locked value exceeding $11.3 billion and a market capitalization of about $73 billion. Developer participation and overall network usage continue to rise. Bitwise and Grayscale recently launched new Solana ETFs in the United States, injecting new optimism, with many analysts predicting that this will lead to a surge in capital inflows similar to that seen after the launch of Bitcoin and Ethereum ETFs.

Clearly, this has not prevented SOL's recent price predicament, although it seems to have withstood today's drop well, rising by 1% overnight with a trading price of 132 dollars. Perplexity's pessimistic forecast also reflects this resilience, predicting that SOL will only increase by 3 dollars in the next month, reaching a trading price of 135 dollars by the New Year.

This prediction shows that Perplexity AI believes SOL will consolidate within the current price range, neither falling significantly nor rising strongly. This “only a 3 dollar increase” prediction is actually an affirmation of SOL's relative resistance to falling. Against the backdrop of a general market decline, being able to maintain the current price and slightly rise is itself a strong performance.

SOL stock soared to $250 in January and fell to around $100 in April. The current price of $132 is still well below its historical high of $293, indicating that there is still a 122% upside potential from the current price to the historical high. Technical indicators suggest that SOL may break out of a bullish flag pattern, and if the breakout is successful, upward momentum will be released quickly.

Favorable industry development, coupled with Solana's reputation as a tokenization hub for real-world assets (which has been trialed by BlackRock and Franklin Templeton), could lead Perplexity AI's bullish scenario prediction to reach $380. This target implies a 188% increase from the current price, and if the Solana ETF successfully attracts significant capital inflows, and Tether and other stablecoins continue to deepen their deployment on Solana, this target could be achieved before 2026.

DOGE faces a 25% fall but payment application expansion

(Source: Trading View)

Dogecoin (DOGE) was born in 2013 and initially started as a joke. Today, it has developed into a major cryptocurrency with a market value of approximately 23 billion dollars, nearly half of the entire 47 billion dollar meme coin market. Throughout late summer and early autumn, DOGE formed several pump patterns on the charts, but now it seems to be crashing.

Perplexity AI predicts that, based on the current trend, DOGE will fall to $0.11 by the end of the year, a 25% decrease from the current price of $0.1466. Although this decline is significant, it is relatively mild compared to the 50% expected drop for XRP. $0.11 is an important support level for DOGE in mid-2024, and if it falls to that level, it may attract bargain hunters.

The previous all-time high for DOGE was $0.7316, reached during the bull market in 2021, and the $1 milestone that DOGE supporters are eagerly awaiting seems further away than ever. However, under the bullish market conditions, Perplexity predicts that the DOGE price could reach $0.33, which would more than double its price.

The application scope of DOGE is also constantly expanding: Tesla accepts DOGE for purchasing branded merchandise, while both PayPal and Revolut support DOGE transfers. These practical application scenarios provide value support for DOGE beyond pure speculation. If DOGE can further expand its payment scenarios and become a payment option for mainstream e-commerce platforms, its long-term value will significantly increase.