Tech

Why XRP Price Is Struggling: It’s Not Ripple’s Fault

3 weeks ago
Bitcoin Ethereum News

TLDR

  • XRP price stagnation is driven by broader economic factors, not Ripple’s issues.
  • Uncertainty surrounding U.S. Federal Reserve decisions is limiting market momentum and investor confidence.
  • Tariff-related concerns and global economic instability are discouraging new investment in XRP and other cryptocurrencies.
  • XRP has been consolidating in a narrow trading range due to limited liquidity and cautious investor sentiment.
  • Hilton predicts that XRP’s price could see growth in the fourth quarter if economic conditions improve.

Despite positive developments in its ecosystem, XRP has been struggling with price stagnation. Crypto commentator Austin Hilton recently highlighted broader economic factors that are stifling XRP price growth. According to Hilton, the uncertainty in the global market, not issues with Ripple or XRP itself, is primarily to blame.

Broader Economic Uncertainty Weighs On XRP Price

XRP price currently stands at $2.82, having seen a slight 2% rise over the past 24 hours. However, it has faced a 2% decline over the past week and month. Hilton pointed out that these movements are not due to negative events tied directly to Ripple or the XRP Ledger. Instead, the market-wide uncertainty is playing a much larger role in the price stagnation.

Hilton explained that the market’s hesitation stems from concerns over U.S. Federal Reserve decisions. “The uncertainty surrounding whether the Fed will reduce interest rates is central to the lack of momentum in crypto,” he said. He added that this uncertainty has led to a cautious approach among investors, keeping liquidity locked and delaying the return of retail investors.

Tariff-related concerns have also added to this uncertainty. Hilton mentioned the impact of recent court rulings against former President Trump’s tariffs. These developments, along with shifting policies, have contributed to an unsettled environment, discouraging new investment in XRP and other cryptocurrencies.

Seasonality And Investor Sentiment Keep XRP In Check

Hilton noted that September has historically been one of the weakest months for Bitcoin, affecting the broader crypto market. He believes this seasonal trend also explains XRP’s lack of price movement in recent weeks. The overall market consolidation is a sign that investors are waiting for clearer economic signals before making moves.

Over the last 44 days, XRP has mostly remained in a sideways trading pattern. Hilton pointed out that the lack of progress in XRP’s price reflects limited liquidity and reduced investor participation. “Many investors are sitting on the sidelines, waiting for economic clarity,” he stated.

The broader market trend of stagnation is not exclusive to XRP. Hilton mentioned that other major cryptocurrencies like Ethereum have also seen little price movement in recent weeks. This indicates that investors are hesitant to allocate new capital into the market due to ongoing uncertainties.

Looking ahead, Hilton believes conditions may improve in the fourth quarter of the year. He speculated that October through December could offer more favorable growth opportunities. However, he also warned that further downsides for XRP would remain possible if the market uncertainty continued.

The outcome of the Federal Reserve‘s September meeting will play a crucial role in shaping investor sentiment. If the Fed lowers interest rates, it could restore confidence and unlock liquidity. Hilton emphasized that the direction of the U.S. jobs report will also influence the Fed’s decisions and, by extension, the crypto market.

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Source: https://blockonomi.com/why-xrp-price-is-struggling-its-not-ripples-fault/