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The reason behind the recession XRP price growth It has remained obscure, with many cryptocurrency analysts citing legal disputes and market volatility as major factors hindering its momentum. However, even during favorable market conditions and after obtaining legal clarity after multiplicity Ripple court wins Against the SEC, XRP still exists Failed to experience a significant upward surge.
As a result, investors have questioned the slowdown in cryptocurrency price growth, prompting a cryptocurrency analyst to provide a detailed explanation as to why XRP remains at a low price, barely showing signs of a possible rally.
Why XRP price is struggling to gain momentum
On October 13, a cryptocurrency analyst and researcher known as “Crypto Tank” took to X (formerly Twitter) to discuss the reasons behind the rise of this cryptocurrency. XRP price is not moving. In the long one Share XThe analyst explained that Ripple price It is determined by dividing the volume of XRP actively used on the ledger by the circulating supply.
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According to Crypto Tank, XRP investors have a misconception that the total XRP in circulation is around 56 billion. However, this number is misleading since a large portion of the XRP supply is held in various private wallets by large-scale holders, also called “WhalesThis means that most of the XRP supply is not actively used in the market, but is firmly held in these wallets.
The analyst revealed that what really matters XRP price movements It is the amount of circulating supply used to actively participate in transactions on the XRP ledger. Currently, only about 20% of the total XRP supply is actively staked on the XRP ledger daily.
In order for XRP to be used to carry out transactions, it often needs to be paired Automated Market Makers (AMMs)Which provides liquidity during trades. These liquidity pools are important to… XRP for global settlementsOnly abundant liquidity can facilitate these massive transactions amounting to trillions of dollars. This need for great liquidity in XRP Ledger It is what limits price movements.
After the analyst’s report, this becomes clear XRP Price Struggle More complex than just market fluctuations. Its ongoing legal dispute with the Securities and Exchange Commission also increases uncertainty about any potential price increases in the future.
Analyst reveals XRP’s roadmap to $500
While discussing the reasons XRP price It remained stagnant, Crypto Tank too unveil A roadmap for how XRP will reach $500. If it could become XRP, the analyst explains On a large scale Approved for global settlements Like SWIFT, it will likely reach this target price.
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He revealed that the increase in market cap or individual investors does not matter, as XRP will only rise to the expected price of $500 if it is able to handle large institutional transactions through deep liquidity pools and AMMs.
Featured image created with Dall.E, chart from Tradingview.com