Despite Positive News, XRP Price Remains Near the $2 Mark, Disappointing Investors

XRP price has remained near the $2 mark, disappointing investors who expected higher returns following recent positive XRP news. Despite Ripple’s win in the XRP SEC case and its continued global expansion, the XRP price has fallen 11% in the last month.

Recently, there has been a lack of significant movement in the XRP price, despite a series of positive developments for Ripple. Following Ripple’s win in its case against the SEC and the company’s ongoing efforts to expand its operations globally, the XRP price has decreased by 11% over the last month.

Over a three-month period, the cryptocurrency has seen an even steeper decline of 36%. According to prominent software engineer Vincent Van Code, seven core factors contribute to the sluggish performance of the XRP price. These issues range from regulatory uncertainty to shifting investor psychology and evolving market dynamics.

Does the XRP SEC Case Still Hurt Ripple Price?

Although Ripple achieved a substantial victory in its case against the SEC, the outcome of the case isn’t fully decided yet. Pending approval from Judge Analisa Torres for a reduced fine and lifted sales ban is still needed. Afterward, legal experts say there is still a chance the judge could reject the proposed settlement.

If the judge rejects the settlement, the case will return to court, and the process of determining a final outcome could extend until 2027. This ongoing uncertainty tends to reduce bullish momentum for the XRP price.

"Why XRP price not moon"

This is probably the second most common question people asking (the first is of course "where is Elvis")

Here is my take on what PEOPLE think is happening:

1. Regulatory uncertainty persists: The SEC lawsuit against Ripple isn’t fully resolved, and … pic.twitter.com/76z876qW16

— Vincent Van Code (a.k.a. "The Count") 🦇 (@Codebunde) August 10, 2024

How Do Crypto Trends Impact XRP Price?

Global market trends in cryptocurrencies are affecting the stagnant Ripple price. Van Code notes that the increased interest in Bitcoin and stablecoins has drawn attention away from Ripple’s token. Many businesses now favor stablecoins for cross-border payments, an area where XRP previously had an advantage.

The change in market preference has reduced demand for Ripple despite the company’s ongoing business development efforts.

How Does XRP Supply Affect Its Price

The tokenomics of XRP create additional obstacles. This cryptocurrency has a high circulating supply of over 58 billion tokens. Ripple also performs scheduled monthly releases from escrow, generating constant selling pressure. Investors are cautious about buying, which could potentially decrease the Ripple price.

These supply factors limit the positive impact of good XRP news or strategic partnerships.

Will the Ripple Stablecoin Compete with XRP?

Recent Ripple news has included the development of its stablecoin, RLUSD. This became particularly notable after Hidden Road secured FINRA approval. While RLUSD does burn XRP with each transaction, the benefit to this digital currency remains indirect.

Van Code suggests this strategic move might indicate Ripple sees stablecoins as having more immediate utility and regulatory favor. This outlook could reduce XRP’s utility, weakening confidence in its price.

Does Lack of Transparency Hurt XRP?

Investor confidence represents another crucial issue. Van Code points to transparency worries, suggesting unclear communication of the latest XRP news creates uncertainty. This factor, combined with frequent profit-taking and quick sell-offs during price peaks, limits upward movement.

Traders cashing out quickly on short-term gains prevent the long-term build-up, stopping sustained rallies even when conditions appear favorable.

How Does Investor Psychology Affect XRP Price?

According to Van Code, investor psychology is a subtle yet significant influence. After years of XRP trading at around $0.5, many investors struggle to accept the new norm near $2. This price anchoring creates psychological resistance. It makes investors reluctant to buy or hold, even when fundamental aspects support higher prices.

Consequently, buying activity slows, reinforcing stagnation for the Ripple price.

Are XRP’s Problems Just Perceptions?

While these concerns are raised in community discussions, Van Code argues that they are mostly perceptual rather than fundamental. He emphasizes that XRP is a long-term investment. Recent Ripple news highlights that its infrastructure projects need time to yield results.

Investors expecting rapid returns may be focused on the lackluster price performance, neglecting the foundational work being done. Until the overall sentiment aligns with long-term prospects, price movement may continue to lag behind development achievements.

Is Patience Key for Ripple Price Gains?

Despite facing challenges, many barriers to XRP’s expansion are more psychological than fundamental. Positive Ripple news about legal and tech progress could eventually reverse trends. However, investor caution continues to put pressure on the XRP price.

As Van Code suggests, XRP might be a “store it away” token, with its true value emerging only after there is greater alignment between perception and progress. For now, being patient could be the key to realizing future gains with this cryptocurrency.