5 Market Factors Holding Back Ripple (XRP) Price, According to Analysts

Jakarta, Pintu News – Although Ripple has won its lawsuit against the US Securities and Exchange Commission (SEC) in 2023, the price of the cryptocurrency has yet to show any significant recovery. A number of analysts and the crypto community have started highlighting various market factors that are suspected to be the cause of XRP’s price stagnation. This article summarizes five key market forces that are believed to be holding back XRP’s price growth.

The Prolonged Impact of the SEC Lawsuit

One of the most defining moments in Ripple’s history occurred in December 2020, when the SEC sued Ripple for allegedly offering unregistered securities. This lawsuit caused XRP to lag behind the huge rally that took place in the rest of the crypto market. Although Ripple won the lawsuit in 2023, many felt that the damage had already been done. One anonymous user mentioned that the lawsuit “stole years of XRP growth,” making it stagnate while other assets soared.

While the legal victory should pave the way for a recovery, the price of XRP remains unable to break significant resistance levels. This raises a new question among the crypto community, is the lawsuit the only price inhibitor, or are there other more complex factors?

Also Read: 3 Altcoins Ready to Surge Before SEC-BlackRock Meeting, See Why!

Large XRP Holdings by Ripple

Ripple has over 43 billion XRP held in escrow since 2017, and releases it periodically to the market. While this mechanism is meant to maintain a stable supply, some have argued that this constant release could depress the price of XRP. Critics argue that this large volume could create consistent selling pressure.

However, Ripple’s Chief Technology Officer emphasized that On-Demand Liquidity (ODL) transactions have no direct impact on market prices. Even so, the uncertainty over XRP distribution remains a major concern for investors and crypto market watchers.

Big Wallet Activity and its Impact on Prices

Large wallets that hold significant amounts of XRP but are not directly associated with Ripple, are also in the spotlight. When these wallets make large transfers, the price of XRP tends to drop. While this correlation has been observed, there has been no concrete evidence of intentional price manipulation.

In one analysis, a negative correlation of -0.73 was found between transaction structure and XRP price. While this is not strong enough to conclude price suppression, it does indicate the complexity of trading activity that could hamper XRP’s price performance.

Speculation on the Role of Financial Institutions

Another theory that has emerged is that large financial institutions are actively suppressing the price of XRP to buy large quantities at low prices before mass adoption begins. Some believe that the big banks are trying to gain an advantage by creating doubts about the value of XRP.

A similar example occurred in 2017 when a surge in the price of XRP was accompanied by an increase in network usage. However, before the big drop, the community on the network became more concentrated, raising concerns about node dominance and possible market manipulation. While still speculative, this theory remains widely circulated in the crypto community.

Clarification on XRP Distribution

Not everyone agrees with the narrative that Ripple has a major influence on the price of XRP. Attorney Bill Morgan stated that the notion that Ripple controls 43% of the total supply is false. According to data from CoinMarketCap, the current circulating supply is 58.5%, outside of what Ripple holds in escrow.

This statement aims to neutralize the view that Ripple is solely responsible for XRP’s price stagnation. On the other hand, more transparency and clearer communication regarding the distribution and use of XRP could help alleviate market fears.

Conclusion

XRP price is still stuck in uncertainty despite Ripple’s victory in the legal dispute with the SEC. Five main factors – ranging from prolonged legal effects, large supply control by Ripple, large wallet activity, institutional speculation, to distribution misunderstandings – shape the current price dynamics. Understanding these factors is important for investors and crypto market watchers in assessing the long-term potential of XRP as one of the major cryptocurrency assets.

Also Read: New Hampshire Becomes a Pioneer, Officially Keeping Bitcoin as a Reserve!

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying andselling Bitcoin and other crypto asset investments are the responsibility of the reader.

Reference:

• Bena Ilyas. Top 5 Market Forces Keeping XRP Price Capped, Analyst Warns. Accessed May 7, 2025.
• Featured Image: Track Insight