Expert Pinpoints What Holds XRP Price Down Despite Positive News, States What Would Propel Next Rally

Despite a wave of positive developments surrounding XRP and the XRP Ledger (XRPL) , the cryptocurrency’s price has struggled to gain significant momentum. A surge in institutional interest and progress on ETFs has been building momentum and fueling optimism. However, despite these bullish signals, XRP remains stagnant, trading at $2.21 after a 13.58% decline over the past 24 hours.

Crypto analyst and community commentator Gen A recently weighed in on the situation, offering insights into why XRP’s price remains subdued and identifying key catalysts that could trigger the next breakout.

Broader Market Conditions Weighing on XRP

The overall state of the cryptocurrency market is one of the primary reasons for XRP’s lackluster price movement. Gen A pointed out that Bitcoin’s performance heavily influences the movement of altcoins like XRP. When Bitcoin consolidates or faces downward pressure, altcoins often struggle to attract sufficient buying momentum. With BTC still wrestling below the $100K mark, the broader market remains uncertain, limiting XRP’s ability to surge.

Macroeconomic factors are important in market sentiment. Gen A highlighted concerns about inflation, rising interest rates, and institutional liquidity constraints, which have created a challenging environment for risk assets, including cryptocurrencies. Additionally, geopolitical and economic shifts, such as recent tariff hikes imposed by President Trump on imports contribute to the market’s cautious approach.

Another major factor is investor preference for assets with clear regulatory frameworks. While XRP offers a strong use case, large-scale investors continue to tread carefully until there is complete regulatory certainty.

Legal Uncertainty Still Clouding XRP’s Potential

While XRP has achieved notable legal victories, its ongoing battle with the U.S. Securities and Exchange Commission (SEC) remains a key factor keeping investors hesitant. Gen A emphasized that, despite a federal ruling in July 2023 confirming that XRP is not a security, the lawsuit is yet to be fully resolved. This lingering uncertainty continues to influence market sentiment.

The SEC’s recent legal decisions have further fueled speculation. While the agency has withdrawn its case against Coinbase and put its lawsuit against Binance on hold, it has not taken similar action in the Ripple case. Many analysts believe this is due to the case’s complexity, particularly as it has advanced to the appeals stage.

Until a definitive settlement or resolution is reached, institutional investors may delay major XRP allocations, contributing to the cryptocurrency’s sluggish price action.

XRP’s Supply Dynamics and Market Liquidity Structure

Another key issue affecting XRP’s price movement is its circulating supply and liquidity structure. Gen A pointed out that Ripple holds a substantial portion of the total XRP supply, with a scheduled release of escrowed funds. While these periodic releases are relatively small—typically around 200 million XRP—they still contribute to a rise in market supply, which can cap price growth.

Market makers also play a vital role in maintaining price stability by absorbing demand and mitigating extreme price volatility. While this mechanism ensures stability, it also limits the potential for rapid price surges. Some investors believe that large holders, or “whales,” are accumulating XRP at lower prices, keeping the asset within a restricted range until a more significant catalyst emerges. However, this remains speculative and unverified.

XRP’s Growing Adoption Yet to Translate Into Price Gains

Despite the market’s current stagnation, XRP is gaining traction in real-world financial systems. Financial institutions, banks, and payment service providers are increasingly exploring its utility for cross-border transactions and liquidity management. However, Gen A noted that real-world adoption takes time to reflect in price action.

Ripple’s expansion into global payments continues to rise, but transaction volumes may not yet be high enough to impact market valuation. Unlike many speculative cryptocurrencies that experience volatile price movements based on hype, XRP’s long-term adoption strategy appeals more to institutional investors than short-term traders.

Gen A believes that XRP’s strong fundamentals will eventually drive price appreciation, but the market has not yet fully priced in its long-term potential. As more financial institutions integrate XRP into their systems, its value could steadily rise, though it may not happen overnight.

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Speculation on Market Manipulation

Within the XRP community, some believe that large investors deliberately keep the price suppressed to accumulate holdings before a major event, such as regulatory clarity or ETF approvals. Gen A acknowledged these theories, noting that market makers and institutional players could want price levels to maintain stability before a major move.

Rumors of price manipulation abound, but there’s no concrete proof to substantiate these claims. However, if institutions are indeed waiting for a key event before increasing exposure, a sudden price breakout could occur when the time is right.

Key Triggers for XRP’s Next Rally

Despite the current stagnation, Gen A outlined several potential factors that could propel XRP into a strong uptrend:

Resolution of the Ripple Lawsuit: A favorable settlement or dismissal of the case could provide the long-awaited regulatory clarity essential for institutional participation.

Approval of an XRP ETF: Just as Bitcoin ETFs have driven institutional inflows, an XRP-based ETF could spark renewed investor interest and capital inflows. The SEC’s acknowledgment of multiple XRP ETF filings is a step in this direction.

Bitcoin’s Market Breakout: Since altcoins often follow Bitcoin’s lead, a strong bullish breakout above current resistance levels could lift XRP along with the broader market.

While XRP’s price may lag behind the positive developments surrounding its ecosystem, Gen A emphasized that the right catalyst could ignite the next major rally. Until then, market participants remain watchful for the key events that could reshape XRP’s trajectory.

Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.

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