XRP continues to surprise traders as it remains largely unaffected by major catalysts in the cryptocurrency market. Despite Ripple's court victory in the lawsuit against the SEC and Jerome Powell's recent speech at Jackson Hole sparking bullish momentum for Bitcoin and Ethereum, XRP is still trading within a narrow range.
This unusual separation has led investors to question why XRP trades differently from other top altcoins. To understand XRP's subdued price reaction, one must closely examine liquidity, investor sentiment, regulatory oversight, and its practical utility.
The price volatility of XRP is not random but related to strong market factors and investor behavior that shape the fluctuations of this token. Here are some examples.
Price catalysts: The Ripple lawsuit against the SEC has dominated cryptocurrency news for years, with speculators reacting to every filing, ruling, and comment throughout the process. Due to this long-standing anticipation, most outcomes have already been reflected in XRP's pricing.
Liquidity & Market Depth: Unlike smaller altcoins, XRP is traded with high liquidity on global exchanges. While an obscure altcoin might skyrocket by 30% due to speculation, XRP requires significant capital inflow to break through established ranges.
Investor sentiment: The 'XRP Army' has long believed in Ripple's banking and payment story, with a long-term mindset. This creates a group of investors less affected by short-term macro factors or legal updates. Instead, they are willing to wait for adoption milestones and support from institutions, forming a more committed and resilient investor community.
Weak correlation with macro events: Bitcoin and Ethereum are often considered risk assets, reacting strongly to inflation reports, interest rate guidance, or speeches from the Federal Reserve. In contrast, XRP has historically shown weaker correlation with such macro events. XRP does not trade like a speculative channel or a macro hedge but resembles more of a utility token, making its price less influenced by Powell's tone or treasury bond yields.
XRP Price Prediction: Will It Reach $10?
XRP has undergone a significant price decline in recent months, keeping the upward momentum within a narrow range. Although the start of the trading month was quite positive, the current chart patterns indicate that bullish strength is waning. The question is: what could happen next for the XRP price surge?
After breaking through the final resistance level and setting a new ATH, the price of XRP is consolidating within a narrow range between 0.618 FIB and 0.786 FIB. However, the price surged beyond this range but did not reach 1 FIB.
Interestingly, the monthly CMF has remained flat since 2018, indicating no significant liquidity influx since then, yet it has not dropped to negative levels. On the other hand, the monthly RSI indicator continues to maintain an upward trend and has also entered overbought territory.
Therefore, the price of XRP continues to remain within a bullish range and may eventually reach a new ATH, but given the points mentioned above, reaching $10 may be a challenging task for the third-largest cryptocurrency.
