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Top Engineer Shares 7 Reasons Why XRP Price Isn’t Rising
The ongoing price stagnation around XRP continues to raise questions within the crypto community. Despite favorable legal outcomes and Ripple’s continued expansion, XRP has remained flat at around $2. The asset is down 10% over the past month and 36% in the last three months.
Meanwhile, Vincent Van Code, a well-known software engineer in the XRP community, has offered insights into what he believes is driving current market sentiment. Van Code outlined seven key reasons circulating among investors that may be keeping XRP’s price action subdued.
7 Common Beliefs Holding XRP Back
First on the list is regulatory uncertainty. While Ripple’s battle with the SEC is largely resolved, the potential for reversals and fines continues to keep institutional investors cautious.
Notably, the appeal in the case is officially on hold. Stakeholders are now waiting for the SEC to confirm a reduced fine for Ripple and agree to lift the ban on XRP institutional sales. However, the final approval of this resolution still rests with Judge Analisa Torres.
Although optimism around a favorable outcome is high, some legal experts believe Judge Torres could still deny the proposal, potentially sending the case back to court and delaying resolution until as late as 2027.
Global Market Headwinds
Beyond legal developments, Van Code believes global trade tensions, Bitcoin’s dominance, and the rise of stablecoins are diverting attention from XRP. More firms are now pivoting toward stablecoins for payment processing—XRP’s core use case.
Tokenomics Challenges
Van Code also pointed to XRP’s high circulating supply of 58 billion tokens, coupled with Ripple’s monthly escrow releases, as contributors to persistent sell pressure.
Additionally, he noted that recent developments, such as Hidden Road’s FINRA license approval, focus more on Ripple’s stablecoin RLUSD than XRP. He suggested this means, at best, only indirect benefits for XRP, as RLUSD transactions burn XRP.
The engineer also highlighted mixed market sentiment as another factor holding back XRP’s price. Specifically, he cited concerns over Ripple’s transparency. Van Code added that excessive profit-taking, especially beyond the $2 mark, has dampened the impact of buying pressure.
For example, frequent pump-and-dump schemes in the crypto market have caused many investors to cash out on small 5–10% gains rather than holding longer, further increasing selling pressure and limiting price growth.
Buyer Psychology
Moreover, Van Code pointed out that buyer psychology plays a role. After seeing XRP trade at $0.5 for years, many investors struggle to justify buying at prices above $2, even if the fundamentals have improved.
“These Are Just Perceptions”
Despite listing these challenges, Van Code emphasized that none are fundamentally valid reasons to question XRP’s long-term value. According to him, XRP is a “buy it and store it away” token, adding that Ripple’s efforts will take years to reflect in the token’s price.
Ultimately, he hinted that with the SEC lawsuit mostly behind Ripple and favorable market conditions beginning to take shape, major developments may be just around the corner.
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