 
 
XRP has continued to struggle in recent weeks, with its decline accelerating on Monday, Feb. 24, as the price tumbled nearly 15%.
Notably, since December 3, the third-largest cryptocurrency has been range-bound between $2.80 and $2.00. This continued weakness persists despite a series of major developments expected to boost its price.
Beyond Ripple’s victory in the SEC lawsuit in May 2024, which confirmed XRP is not a security, positive news such as Ripple’s new partnerships and progress on XRP exchange-traded funds (ETFs) have gained momentum.
For instance, the U.S. Securities and Exchange Commission (SEC) has recently acknowledged filings for multiple XRP ETFs, including Grayscale’s XRP ETF and potential offerings from Canary Capital, WisdomTree, and CoinShares. Additionally, discussions about XRP’s possible inclusion in a U.S. strategic reserve have further fueled optimism within the community.
Recently, popular crypto analyst GA Spark weighed in on the situation, outlining several reasons why XRP has yet to respond to these catalysts.
 
According to Spark, the broader market’s influence cannot be understated. “If Bitcoin, Ethereum, and other major assets aren’t rallying, XRP often struggles to gain momentum, “ he tweeted.
Notably, Bitcoin’s dominance continues to dictate the movement of altcoins, and with macroeconomic factors such as high interest rates and inflation concerns affecting the financial markets, institutional liquidity remains limited. As a result, XRP, despite its unique utility, moves in correlation with broader market trends.
The pundit also argued that regulatory uncertainty remains a significant barrier. According to him, while Ripple won a crucial battle against the SEC last year, the case is not fully resolved, and institutions remain cautious. Many U.S. exchanges still limit XRP adoption, and some platforms avoid listing it altogether due to lingering concerns. He emphasized that full regulatory clarity, including potential approval of XRP ETFs, could be the catalyst needed to spark significant institutional investment.
Supply and liquidity dynamics also play a role. The analyst noted that Ripple’s controlled escrow releases increase available supply, “which can slow down price appreciation.”
Additionally, XRP is fundamentally a utility-driven asset, meaning its adoption in financial systems is progressing but not yet fully priced in. The pundit noted that, unlike more speculative crypto assets, XRP’s real-world use cases, such as On-Demand Liquidity (ODL) for cross-border payments, are still in the early stages of mass adoption, adding that over time, increasing transaction volumes may reflect in XRP’s price.
Another theory points to potential market manipulation. “There is speculation that whales and institutions are deliberately keeping XRP’s price suppressed while they accumulate at lower levels,” he noted.
According to him, this suppression allows them to buy more XRP at favorable prices. It maintains stability until a major catalyst, such as regulatory clarity or ETF approvals, triggers a major price breakout.
At press time, XRP was trading at $2.20, reflecting a 9.9% drop over the past 24 hours.
Source: https://zycrypto.com/pundit-explains-why-ripples-xrp-price-hasnt-exploded-yet-despite-positive-news/