Why Ripple’s Price Has Lost Momentum

In the summer, Ripple (XRP) was still on the fast track after an important court victory. But now in the fall, XRP is stagnating in a narrow price corridor. When might momentum follow?

An impressive Bitcoin week is behind us, driven by predictions of Bitcoin ETFs coming soon, the cryptocurrency has stabilized above $34,000. With this 17-month high, BTC has set the bar for altcoins.

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What is striking: Ripple (XRP) cannot follow the Bitcoin rally and is currently stuck at a level of around $0.56, which cannot follow up on summer successes

When Ripple won an important partial legal victory against the U.S. Securities and Exchange Commission (SEC) in July, even the $1 mark seemed to be in sight for XRP.

While altcoins such as Chainlink (LINK) are setting up one annual high after another these days, XRP seems paralyzed. Ripple has gained further legal ground with the discontinuation of personal proceedings against the management and other smaller-stage victories in the dispute with the SEC. But even economic news like Ripple’s cooperation with Web3 fintech Uphold failed to give XRP any new momentum.

Some observers see the XRP problem in the fact that an important ruling is still pending. A jury trial is scheduled for April 2024 to decide whether previous XRP sales by Ripple to institutional investors were illegal after all. In the worst case, there could even be renewed consequences for the listing of XRP on US crypto exchanges, according to the fears. What is clear is that the SEC still wants to make an example of XRP and that Ripple can continue its procedural winning streak is by no means guaranteed.

Broader analyses, however, also come to the conclusion: The court victories for XRP have only glossed over the most important question in the short term. After all, Ripple’s basic concept for XRP is to establish a crypto bridge currency in international payments. However, the offer is not popular among classic major banks, and even innovative fintechs see XRP at best as one option among many.

Conclusion: XRP and Ripple lack practical use cases

Ripple’s PR department has been running like clockwork for years. It publishes news in large numbers about how XRP is to gain a foothold in the NFT sector, for example, or how it wants to take a leading role in the trading of CO2 certificates.

However, on the one hand, it is regularly unclear whether XRP is really needed and on the other hand, such initiatives can only be classified as extended test runs. We conclude: In order for XRP to live up to its still enormous market capitalization of 30 billion US dollars, new monetary use cases are urgently needed.

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(Featured image by Rūdolfs Klintsons via Pexels)

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