Market analysts are shedding light on the obstacles preventing XRP from hitting the $1 mark, such as negative sentiments and the ongoing legal battle between Ripple and the SEC.
Over the weekend, XRP fell below $0.50, dropping to $0.4930. This decline below a significant psychological barrier comes after a general correction in the cryptocurrency market following last week’s gains. The previous week saw a surge in prices, with Bitcoin crossing $73,000 for the first time in seven months.
Despite the bullish trend, XRP failed to keep up, peaking at just $0.5300 last week. As the market entered a correction phase, XRP followed suit. With XRP consistently struggling to rise above $1 despite fluctuations in the overall market, many are left pondering why this milestone remains elusive.
In a recent post on X, Uphold, a US-based exchange known for its support of XRP, initiated a discussion by asking community members about the main obstacles preventing XRP from doubling to $1.
Responses varied, with some suggesting that there may be internal manipulation keeping the price down, while others pointed to low transaction volumes on the XRP Ledger. However, Ripple’s latest report indicated a significant increase in transactions on the XRPL on a quarterly basis.
One commenter proposed that introducing XRP against the upcoming RLUSD stablecoin could boost its price significantly. However, the impact of this move alone on XRP’s performance remains uncertain.
Negative sentiment surrounding XRP was also attributed to large XRP token donations made by Ripple’s chairman to support Kamala Harris’s campaign.
The ongoing SEC lawsuit was identified as a key factor affecting XRP’s price, with Ripple acknowledging that the legal battle has an impact on XRP’s value in its latest quarterly report.
Currently trading at $0.5068, XRP last hit $1 in 2021. To reach this milestone again, its price would need to increase by 97.31%, presenting a significant challenge given the current market conditions.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. The opinions expressed are those of the author and not necessarily reflective of The Crypto Basic. Readers are advised to conduct thorough research before making investment decisions, as The Crypto Basic is not liable for any financial losses.