XRP’s Price Performance Is Not as Bad as It Looks: Analyst

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As an experienced analyst, I find the recent underperformance of XRP, a Ripple-affiliated cryptocurrency, to be puzzling despite its current dismal performance against other top 100 coins. The skewed figures are mainly attributed to the massive price rally following Rippe’s partial win against the U.S. Securities and Exchange Commission (SEC) last July.

As an analyst, I’ve observed that out of the top 100 cryptocurrencies by market capitalization, Ripple-affiliated XRP has underperformed in terms of price change over the past 24 hours, falling short in 90 instances. Notably, renowned trader Peter Brandt has raised concerns, implying that XRP’s value against Bitcoin could potentially decline all the way to zero.

That said, this seemingly dismal price action might not be as bad as it looks.

According to Bill Morgan’s analysis, the data is significantly influenced by the substantial price surge of the token after Ripple partially prevailed in their legal dispute with the US Securities and Exchange Commission in July.

Although XRP‘s price hasn’t been terrible since the July court decision, the analyst remains perplexed as to why XRP has struggled to maintain its post-ruling momentum.

“Instead of asking why XRP‘s price is lagging behind other top 100 coins, it would be more productive to consider why the price increase following the summary judgment didn’t last and almost all of those gains were lost. Additionally, it’s worth questioning why XRP continues to trade at prices similar to what we saw in 2018.”

Short-lived price rally

Following the decision by U.S. District Judge Analisa Torres that classified XRP as a security exclusively when Ripple sells it to institutional investors, the value of this contentious digital asset surged significantly.

As a crypto investor, I experienced an exhilarating rise in XRP‘s value when it hit a new peak of $0.94 on Bitstamp after the recent ruling. However, my excitement was short-lived as XRP plummeted 57% from that post-ruling high.

Currently on Bitstamp, XRP is priced at $0.49. Notably, this is lower than its peak value of approximately $0.71, which was reached in July 2018 – a time when the broader cryptocurrency market was experiencing a downturn.

Ripple not suppressing XRP

Some individuals within the community have raised questions about Ripple possibly manipulating the price of XRP by selling large quantities of tokens artificially. However, Morgan holds a differing perspective and believes that such price suppression is unlikely to be occurring.

According to a report from U.Today, I’ve discovered that Ripple does not provide discounts for its On-Demand Liquidity (ODL) service to its customers. Consequently, the revenues generated from ODL sales do not significantly influence the company’s stock price.

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2024-06-09 15:06