A financial expert has called attention to several factors possibly contributing to the recent XRP price stagnation.
Despite optimism among investors, XRP has not experienced the explosive price movement many anticipated, mostly consolidating at $2. Experts attribute this stagnation to factors like market disinterest, low liquidity, and a lack of significant catalysts.
Market Conditions Limit XRP’s Growth
According to financial analyst Austin Hilton, the current state of the crypto market is due to a widespread lack of enthusiasm. In a recent video analysis, he explained that many investors have withdrawn their capital and are waiting for a major event to set things in motion.
“There are millions upon millions of existing crypto investors who have pulled their money out and are sitting on the sidelines waiting for something big to happen,” Hilton noted. This drop in interest is a major reason why XRP has struggled to gain momentum.
Meanwhile, institutional investors are quietly accumulating digital assets, including XRP. Despite high daily trading volumes, reaching over $4 billion at one point, the price has remained largely unaffected.
Hilton noted that until a massive positive event occurs, the market is unlikely to witness major price movements. However, events such as progress in the XRP ETF products launch, the resolution of the SEC vs. Ripple lawsuit, and XRP reserve disclosures have failed to trigger any sustainable run due to the disinterest.
Summer Market Slowdown
Another factor influencing XRP’s price is the seasonal trend of crypto investing. According to Hilton, the summer months tend to be slow for the market, as many investors focus on personal activities rather than trading.
Hilton pointed out that May through July often see reduced trading activity, and this year is likely to follow the same pattern. However, as the year progresses, experts believe the fourth quarter could bring renewed momentum.
Hilton stressed that while short-term movements may remain limited, the long-term outlook for XRP remains positive.
XRP Resistance and Support Levels
Hilton pointed out that XRP is currently within a tight corner. Resistance comes in at $2.60 and $2.80, meaning that unless trading volume increases with massive buy pressure, XRP will struggle to break past these barriers.
On the other hand, the market features support levels at $2.24 and $2.30. If prices fall below these levels, the asset could slip below $2, further dampening investor sentiment.
Hilton pointed out that low liquidity in the market is a major issue, preventing XRP from achieving upward momentum. He also cautioned against expecting a dramatic price surge in the near term, particularly because there are no major positive catalysts currently driving the market forward.
Historical XRP Patterns Suggest a Potential Uptrend
Meanwhile, another market expert, Dom, believes that XRP’s price action is behaving differently this time compared to previous cycles. Typically, XRP price has risen quickly to new highs but has not spent much time consolidating at those levels. This time, however, things appear different.
“The longer price spends time at a level, it’s always just reflective of how much market participants ‘agree’ on that price,” Dom noted.
Unlike past market cycles where XRP’s value skyrocketed and then quickly declined, the current price range above $2 has shown more stability. He noted that price consolidation at these levels suggests that XRP could be building a strong base for a future breakout.
This behavior contrasts with previous cycles, where XRP would reach a peak and rapidly decline, providing little opportunity for investors to exit at high prices.
According to Dom, “We have been seeing range building, acceptance, and volume holding up above $2.” He suggests that this stability could lead to a potential upward expansion once the market gains confidence. Currently, XRP trades for $2.47, up 3.33% in the past 24 hours.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
