What’s Keeping XRP Price Below $5?

by

As an analyst with over two decades of experience in the financial markets, I have witnessed numerous price movements and regulatory battles that have shaped the crypto landscape. The current state of XRP is one that has intrigued me for quite some time now.

After experiencing a dip to $0.5141 during the late trading session in New York on Wednesday, the price of XRP appears to be on a path towards recovery. For quite some time now, this asset has shown a pattern of fluctuation, typically moving between $0.5 and $0.7, despite significant adoption associated with Ripple. This leaves many investors wondering: Why hasn’t the value of XRP climbed up to $5 as one might expect?

In the last day, XRP’s price has risen by 0.8%, currently standing at $0.5304. This rise signifies a recovery period after hitting a monthly low of $0.5141 on October 23. The uptick is attributed to Bitcoin‘s volatility, as it dipped below $67,000, causing other cryptocurrency prices to decline.

Reasons Why XRP Price Hasn’t Hit $5 Yet

The price of Ripple remains relatively unchanged due to a combination of factors such as continuous examination by regulators and intense competition within the marketplace.

  1. Regulatory uncertainty from the SEC.
  2. Negative market sentiment.
  3. Competition from other networks.

1. SEC Still Hot on Ripple’s Heels

Despite suffering two significant setbacks, the U.S. Securities and Exchange Commission persists in taking Ripple to court. At present, the SEC is challenging Ripple’s proposed settlement of $125 million, a decision that Judge Analisa Torres has already approved.

Based on the interpretation by Ripple’s legal team, this advancement might prolong the court case until the year 2025. Ever since the lawsuit was initiated in December 2020, the value trend of XRP has been less than stellar.

During the 2021 cryptocurrency surge, XRP’s price increased approximately 1,000%, but the ongoing lawsuit significantly limited its potential profits. If this legal dispute remains unresolved when the next bull run in 2025 begins, XRP may again show modest growth compared to other market players.

2. Negative Market Sentiment

Despite boasting a significant following, XRP often faces criticism from skeptics who believe it will never increase in value. The failure of XRP to gain during periods of heightened market turbulence has led these critics to speculate that its price might be artificially controlled. A market analyst even pointed out that the price didn’t budge at all following Elon Musk’s mention of XRP, implying that the market could be fixed.

Elon Musk just talked about XRP and shit did not even go up a single %

Market is rigged

— Cobb (@AlexCobb_) October 21, 2024

The token distribution system for XRP doesn’t seem to motivate investors to keep their holdings, due to its pre-mined maximum supply of 100 billion tokens. Out of this total, half is controlled by the development team and kept in an escrow wallet. This portion gets gradually released into circulation and returned if unused. As a result, XRP could be one of the most centralized public blockchains within the cryptocurrency market.

Advocates of XRP propose that the release of XRP is being managed carefully, aiming to provide a level starting point for all banking institutions, ensuring fairness in the process.

Negative comments from critics play a crucial role in keeping away new investors, who are crucial for pushing the price upward.

3. Competition From Other Networks

Despite facing legal challenges from the SEC, XRP has managed to maintain its position among the leading ten digital currencies. Nevertheless, over time, potential competitors have been exploring the development of similar products boasting advanced features, potentially capturing the same market as Ripple.

Seven rivals of Ripple, namely Cardano (ADA), Quant (QNT), Algorand (ALGO), Stellar (XLM), Hedera Hashgraph (HBAR), Iota (IOTA), and XinFin Network (XDC), have adopted the ISO 20022 standard. This standard allows them to seamlessly integrate with conventional financial systems, thereby enhancing their ability to work together effectively.

Ripple Price Analysis: Can XRP Reach $5

The monthly XRP price graph maintains an optimistic outlook, moving within a symmetric triangle, which is a component of a bullish pennant. Typically, a bullish pennant signals a continuation, indicating that the price of Ripple might rise further.

Additionally, the cost of action is nearly touching the apex of the symmetrical triangle, and shortly, it will be a critical moment for the asset, as a decision must be made.

The Fibonacci retracement tool indicates significant points where Ripple’s price needs to surpass for further upward movement, starting with the vital level at approximately $0.7626, which could also symbolize a breakout from the bullish pennant formation. If Ripple manages to stay above this resistance point, it has potential to climb higher towards $1.35 and even revisit its past record high before aiming for further targets at $5.77 and $16.

As a cryptocurrency investor, I eagerly anticipate the resolution of the SEC v. Ripple case. A favorable outcome could potentially speed up positive developments for XRP. However, if the case drags on, it seems that we’ll have to be patient and wait for the next bull run before witnessing significant price increases in XRP.

Read More

2024-10-24 18:34