How market psychology and institutional investments influence the XRP price
XRP Remains Stable Despite SEC Victory
The crypto market is currently showing a cautious mood, as the Fear & Greed Index has fallen to 32. While Bitcoin and Ethereum continue to experience high volatility, XRP remains the subject of intense discussion. Many investors had expected an XRP price explosion following the end of Ripple’s legal battle with the SEC, but this failed to materialize.
Somber Reaction to the Victory
When the news broke that the SEC had dropped its lawsuit against Ripple, XRP briefly rose by 16% to $2.60. However, this upswing did not last long: The following day, the price fell back to $2.38. Investors are wondering why XRP hasn’t taken off as expected. Crypto analyst Armando Pantoja points out that the SEC has not yet released an official statement confirming its withdrawal. So far, only Ripple CEO Brad Garlinghouse and CLO Stuart Alderoty have commented on the matter. Without a clear statement from the SEC, many investors remain cautious, preventing an immediate price increase.
Long-Term Outlook for XRP
Despite the current stability, market participants are hopeful for XRP’s imminent growth. Merlin’s founding partner, Johnny Krypto, emphasizes that a muted price reaction is normal in such situations, as markets often react to speculation and stabilize once the news is confirmed. He also points out that XRP rose from $0.50 to $2.50 in November when traders were betting on a Ripple victory. Had the SEC appealed, the price would likely have fallen, but without negative news, the price remains stable.
Edoardo Farina sees the potential for long-term growth in XRP, despite a recent drop to $2.40. While Bitcoin and Ethereum are struggling, XRP has gained 12% since January. Farina points out that potential ETF approvals for XRP, regulations in the stablecoin sector that could benefit Ripple’s RLUSD, and potential support from the Trump administration are key drivers for growth. He also predicts a “supply shock,” in which tokens are burned through transaction fees and institutional adoption could reduce the available tokens, driving up prices.
While some market analysts see great future prospects for XRP, they warn that the crypto markets remain unpredictable. Patience is seen as key to success, especially since a massive surge will not happen overnight. He emphasizes that XRP will benefit from real-world use cases and institutional investment to achieve higher prices in the future.
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