What’s Keeping XRP Price Below $5?
XRP price is on the road to recovery after dipping to $0.5141 during Wednesday’s late New York trading session. The asset has stagnated for a long time, often bouncing between $0.5 and $0.7 despite numerous adoptions surrounding Ripple. The question remains in most investors’ minds: Why hasn’t the price of XRP reached $5 yet?
The XRP price has increased 0.8% in the last 24 hours, trading at $0.5304. This increase marks a recovery phase from a monthly low of $0.5141 on October 23, following Bitcoin volatility as it slipped below $67,000 and caused crypto prices to fall.
XRP/USDT Price Chart
Reasons Why XRP Price Hasn’t Hit $5 Yet
Several factors, including ongoing regulatory scrutiny and market competition, contribute to Ripple price stagnation.
Regulatory uncertainty from the SEC.
Negative market sentiment.
Competition from other networks.
1. SEC Still Hot on Ripple’s Heels
Even after enduring two major losses, the United States Securities and Exchange Commission still fights Ripple in court. Currently, the SEC is appealing Ripple’s settlement offer of $125 million, which Judge Analisa Torres has ruled in favour of.
According to Ripple lawyers, this development could drag the case into 2025. Since the lawsuit was filed in December 2020, XRP price performance has been lacking.
In the 2021 bull run, XRP’s price only rose by about 1,000%, as the impact of the lawsuit largely reduced its potential gains. If the case is unresolved by the time the 2025 bull run begins, XRP could once more register meagre returns compared to the rest of the market.
2. Negative Market Sentiment
While XRP does have a sizeable community, it is never short of critics who posit that the asset will never rise. The inability of XRP to rise during times of increased market volatility has led critics to suggest the price may be manipulated. One market observer noted how the price “did not even go up a single %” after Elon Musk mentioned XRP, concluding that the market is rigged.
Elon Musk just talked about XRP and shit did not even go up a single %
Market is rigged
— Cobb (@AlexCobb_) October 21, 2024
The XRP tokenomics system also does not do a great job of encouraging investors to hold the asset. With a 100 billion max supply already pre-mined, 50% is in the team’s possession in an escrow wallet. This amount is released gradually into the supply and returned if not used. This potentially makes XRP one of the most centralized public blockchains in crypto.
XRP supporters have speculated that XRP supply is undergoing a “controlled rollout” to give all banks the coast basis and “an even playing field before the start.”
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
XRP has done a great job remaining in the top 10 largest crypto assets even while battling the SEC. However, over the years, other developers have considered developing the same product with enhanced features and cornering the same market as Ripple.
XRP has seven competitors who have all adopted the ISO 20022 standard, which enables them to facilitate integration with traditional financial systems and improve interoperability. These are Cardano (ADA), Quant (QNT), Algorand (ALGO), Stellar (XLM), Hedera Hashgraph (HBAR), Iota (IOTA) and XinFin Network (XDC)
Ripple Price Analysis: Can XRP Reach $5
The monthly XRP price chart remains bullish, trending inside a symmetrical triangle part of a bull pennant. Bull pennants are usually continuation patterns, which suggests that Ripple’s price could experience more upside.
Further, the price of action is almost at the tip of the symmetrical triangle and soon, it will be decision time for the asset.
XRP Price Analysis Chart
The Fibonacci retracement tool shows key levels that Ripple’s price must beat to move higher. The first and most crucial is $0.7626, which will also mark a breakout from the bull pennant. If Ripple can maintain above this resistance level, it can surge higher to $1.35 and back to its previous all-time high before targeting $5.77 and $16 as the next target.
The conclusion of the SEC v. Ripple case may help achieve this sooner. Otherwise, the XRP price will have to wait for the bull run to start.
The post What’s Keeping XRP Price Below $5? appeared first on CoinGape.
