Reasons Why XRP Price May Never See Sudden Spike
XRP price has been on an uptrend in the last three days, giving investors hope for recovery. However, despite generous developmental updates from the team and winning a lawsuit against the United States Securities and Exchanges Commission (SEC), the asset has struggled with price amid the crypto market volatility. After five years of waiting, is it time to admit that XRP will never have a sudden spike?
XRP Price Suppressed By Market Sentiment & Regulations
In the week that passed, the Ripple team attended the 2024 Korea Blockchain Week (KBW) and, while there, revealed some interesting information concerning Ripple’s future, including the introduction of programmability to the XRP Ledger. Additionally, Ripple CEO Brad Garlinghouse hinted that the much-awaited RLUSD launch may happen sooner than everyone thought.
Nevertheless, the market sentiment around XRP has remained low, as signaled by the transaction count on the XRP network, which took a nose dive between September 8 and 9, according to data from XRP Scan.
Additionally, regulatory hurdles have kept the XRP price down for a long time, to the extent that hype around the coin may have completely dissipated. The asset’s price performance clearly showed this when Ripple and the SEC reached a potential settlement. The court ordered Ripple to pay $125 million after negotiating down from $2 billion. This settlement effectively ended the legal battle, with Judge Analisa Torres ruling in July 2023 that XRP was “not a security.”
Despite this, XRP surged only 70% before wiping out all the gains over the following two months. The dismal performance of the XRP price on such critical development reveals a high level of uncertainty among investors, a factor that may hold the price down, even in the bull run.
Ripple Supply & Market Manipulation
Many want to believe that the upcoming Ripple’s stablecoin will provide the necessary liquidity to establish XRP as a cornerstone of the future digital economy. However, the price of XRP has oscillated between $0.25 and $0.70 for a long time and is unlikely to spike suddenly.
It has been posited that Ripple could be behind the price manipulation because of how XRP tokenomics are fashioned. However, these allegations remain unbased.
XRP is not like the conventional blockchain. Ripple pre-mined the total supply of 100 billion coins from the start and locked them in escrow, excluding the ones in circulation.
Every month, Ripple releases 1 billion XRP into the market, but any unused coins are returned to escrow and placed at the end of the queue. This method has led to suggestions that Ripple controls the price of XRP.
XRP Price Eyes A 19% Short-Term Fall
XRP broke downward from a symmetrical triangle and might be lower. There could be a slight relief increase of 7% to retest the lower trendline of the triangle before a more significant move downward to $0.42
XRP Price Analysis Chart
Volume is relatively flat while the price is falling, showing a lack of interest from new investors while present investors could be selling.
If the price of XRP slides back into the triangle during the restest, it could invalidate the bearish forecast, and the Ripple price could surge to $0.6 and eventually $0.65.
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Filed under: News - @ September 9, 2024 11:23 am