XRP Price Growth: Analyst Breaks Down The Movements And Why It’s So

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As a seasoned researcher with a knack for deciphering complex financial landscapes, I have to admit that the conundrum surrounding XRP‘s price stagnation has been a fascinating puzzle to unravel. The traditional suspects of market volatility and legal disputes have indeed played their parts, but they don’t seem to tell the whole story.

Despite positive market situations and legal victories in court battles with the U.S. Securities and Exchange Commission (SEC), the growth of XRP prices remains unexplained, as some crypto experts attribute this stagnation to ongoing legal issues and market fluctuations. However, even during these favorable conditions, the price of XRP has not seen a significant rise.

As a result, investors have questioned the cryptocurrency’s sluggish price growth, prompting a crypto analyst to provide a detailed explanation of why XRP remains at a low price, barely showing signs of a feasible rally.  

Why XRP Price Struggles To Gain Momentum

On October 13th, a well-known crypto expert called ‘Crypto Tank’ shared insights about the stagnation in XRP’s price on their (formerly Twitter) post. In this detailed thread, the analyst elucidated that the XRP price is primarily influenced by the ratio of active XRP usage on the ledger to its current circulating supply.

As reported by Crypto Tank, it’s a common misunderstanding among XRP investors that there are approximately 56 billion XRP in circulation. However, this number is deceptive because a significant portion of XRP’s total supply is kept in private wallets by major investors, often referred to as “Whales.” As a result, the majority of XRP’s supply remains idle in these wallets instead of being actively traded on the market.

The analyst revealed that what truly matters for XRP’s price movements is how much of the circulating supply is used to actively engage in transactions on the XRP ledger. Currently, only about 20% of the total XRP supply is actively engaged on the XRP Ledger daily. 

To perform transactions with XRP, it’s frequently necessary to connect it with Automated Market Makers (AMMs), which offer liquidity during trades. These liquidity pools are crucial for XRP to handle international settlements because they can only process massive transactions worth trillions of dollars when there is sufficient liquidity available. The requirement for substantial liquidity within the XRP Ledger is what restricts its price fluctuations.

According to the analyst’s findings, it appears that the fluctuations in XRP’s price go beyond just market turbulence. The ongoing legal battle with the SEC further complicates matters and casts a shadow over any possible price growth in the future.

Analyst Unveils XRP Road Map To $500

While discussing the reasons why XRP’s price has remained stagnant, Crypto Tank also unveiled a road map for how XRP could reach $500. The analyst explains that if XRP could become widely adopted for global settlements like SWIFT, it could potentially reach this price target. 

He disclosed that an increase in market capitalization or retail investors does not matter, as XRP would only surge to the projected $500 price if it can handle large institutional transactions through deep liquidity pools and AMMs. 

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2024-10-15 23:10