Pundit Explains Why XRP Has Not Surged Despite Positive News; Identifies What Could Trigger Next Run

A community pundit has explained why XRP has barely moved despite recent positive developments, identifying what could trigger the next upsurge.

XRP and the broader XRP Ledger (XRPL) ecosystem have seen numerous positive developments recently. From new Ripple partnerships to progress on XRP exchange-traded funds (ETFs), bullish news has been abundant.

For instance, the U.S. SEC has acknowledged filings for multiple XRP ETFs, including Grayscale XRP ETF and prospective products from Canary Capital, WisdomTree and CoinShares. Also, discussions around XRP’s potential inclusion in a U.S. strategic reserve have emerged.

However, XRP’s price has remained subdued, currently trading at $2.48, down 2.83% in the past 24 hours. In a recent commentary, community pundit Gen A discussed the possible reasons behind XRP’s price stagnation.

Why XRP’s Price Isn’t Moving Despite Good News and Partnerships

?The Influence of Broader Market
?Regulatory Uncertainty Continues
?Supply and Liquidity
?Utility vs. Speculation
?Market Manipulation
?What Will Trigger XRP’s Next Big Move?

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— GA Spark • ? (@XRP_Spark) February 11, 2025

Broader Market Concerns

First, he highlighted the broader crypto market’s impact on XRP’s price. He explained that Bitcoin’s dominance plays a significant role. When Bitcoin trades sideways or declines, altcoins like XRP struggle to gain upward momentum. Currently, BTC continues to battle the bears below $100K.

Additionally, amid President Trump’s tariff hikes on imports, macroeconomic factors such as inflation concerns, high interest rates, and institutional liquidity constraints continue to affect the entire crypto market, including XRP.

Further, Gen A suggested that institutional investors currently prefer assets with clear regulatory standing. Many remain hesitant to make large investments in XRP until they see more legal certainty. He noted that despite XRP’s unique utility, it still follows general crypto market trends.

Regulatory Uncertainty Holding XRP Back

According to Gen A, one of the biggest factors affecting XRP’s price is the ongoing lawsuit between Ripple and the U.S. Securities and Exchange Commission (SEC). While there have been some favorable rulings for Ripple, the lawsuit is not yet fully resolved.

Gen A pointed out that institutional investors remain cautious due to the uncertainty surrounding XRP’s classification as a security despite a federal judge confirming that the token is not a security in July 2023. Only a full resolution of the case can completely lift the legal cloud over XRP.

For context, the new SEC leadership has dropped its case against Coinbase, suspended the lawsuit against Binance and dropped investigations on NFT platform OpenSea. However, it is yet to drop the Ripple case. Many believe this is because the Ripple lawsuit is more complex, having reached the appeals phase.

XRP Supply and Liquidity Structure

The community pundit also suggested that XRP’s large circulating supply also affects its price movement. He noted that Ripple controls a significant portion of the total supply, releasing escrowed funds periodically.

According to Gen A, these releases increase market supply and may limit price growth. However, it is important to note that the firm only releases at most 200 million XRP, which is relatively small compared to the overall market volume.

In addition, the analyst stressed that market makers tend to absorb demand, which prevents rapid price spikes. Meanwhile, some investors speculate that whales are accumulating XRP at lower prices, keeping it range-bound until a significant catalyst appears. However, this remains speculative and unconfirmed.

Adoption Takes Time to Reflect in Price

Notably, unlike many speculative crypto assets, XRP is gradually witnessing integration into real-world financial systems. Banks and payment providers are eyeing the token, but Gen A noted that this process takes time.

Further, the Ripple Payments solution is also expanding, but transaction volumes may not yet be high enough to impact the price significantly. Crypto markets remain largely driven by speculation, whereas XRP’s adoption-focused approach attracts long-term investors rather than short-term traders.

Gen A suggested that while XRP’s fundamentals are strong, the market has yet to fully price in its potential. Particularly, institutional partnerships and financial integrations need more time before they translate into substantial price movements.

Speculation on Market Manipulation

Meanwhile, another theory within the XRP community is that large investors are deliberately keeping the price suppressed while they accumulate. Gen A mentioned that some believe whales and institutions are holding prices down before major regulatory clarity or ETF approvals.

Market makers and liquidity providers may also be controlling buy pressure to maintain price stability. If true, this could mean that a delayed but significant price breakout could occur when institutional demand surges. However, these claims remain speculative without concrete proof.

What Could Trigger Next XRP Run?

Despite its current stagnation, Gen A outlined several potential catalysts that could push XRP into its next major rally. First, he noted that a settlement in the Ripple case could provide the regulatory clarity necessary to attract institutional investors.

Further, like Bitcoin ETFs, Gen A noted that an XRP ETF could drive massive institutional inflows. Besides this, he stressed that once Bitcoin breaks out of this consolidation phase, XRP price could follow with increased momentum.

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