Why is XRP Struggling?
Despite gaining partial regulatory clarity in its legal battle with the SEC, XRP’s price has not seen significant growth compared to other major cryptocurrencies. This observation was made by pro-Ripple lawyer Bill Morgan, who expressed surprise and concern over XRP’s sluggish performance.
Morgan questioned why XRP hasn’t caught up with other cryptocurrencies after obtaining legal clarity. He disputed the idea that selling pressure was solely responsible for the stagnation of Ripple’s price.
Morgan argued that the quarterly release of 3 billion XRP from escrow is offset by 800 million XRP returned monthly, suggesting minimal impact on the market. He also highlighted that Ripple’s inflation rate from escrow release is lower than other projects like Flare and Solana.
The Impact of the SEC Case
While the SEC case provided some clarity for XRP, there is still lingering legal uncertainty. The possibility of an appeal by the SEC on Programmatic Sales introduces uncertainty into XRP’s future price direction.
Ongoing negotiations between the SEC and Ripple regarding XRP sales to institutional investors could also impact the token’s valuation. Additionally, speculation about a potential Ripple-SEC settlement has emerged following reports of a closed-door meeting by the financial regulator.
Hot Take: XRP’s Future Potential
As of now, XRP struggles to maintain a price above $0.60 and has experienced daily losses. However, if Ripple’s technology gains adoption in various jurisdictions, it could potentially lead to growth for XRP beyond its legal concerns.
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