London Fund Manager Breaks Down Why Price Isn’t Rising

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Banks and other global financial organizations become more interested in XRP, the cryptocurrency and digital payment system. However, the price of the Altcoin has not changed, so many investors and analysts are perplexed.

While some claim that the use of Ripple’s private whides is hiding the actual value of XRP, others attribute this to problems with liquidity and market sentiment.

Private ledger can limit price growth

According to DigitalG, a former fund manager in London, Ripple’s use of a private ledger for institutional transactions can be the reason why the price of XRP is stagnated.

DigitalG claims that banks can acquire XRP in substantial volumes on a hidden ledger instead of the public XRP whides (XRPL)Keep these transactions from the public market. This separation could explain why increased acceptance did not translate into higher prices.

DigitalG is of the opinion that a merger between the private book and XRPL could take place later this year, which could increase the value of XRP.

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Ripple’s most important goals in the private record are determined by large -scale transactions between institutions and digital currency of the Central Bank (CBDCS). This configuration makes it more difficult for banks to see how XRP could be used in different situations, even if it simplifies things and increases security for them. Some claim that lack of openness can lead to problems with regulations.

Market sentiment and liquidity challenges

Other observers say that XRP price scillations are caused by the general dynamics of the market. Co-founder of Black Swan Capitalist Vandell Aljarrah says that there is not enough demand for liquidity to cause a stock disturbance, even if institutions use XRP for transactions.

XRP market capitalization currently at $ 133 billion. Graphic: TradingView.com

He notes that from July 2024, when it was in a correction phase, the price of XRP continuously varies between $ 0.52 and $ 0.56.

The approval of the banks of Blockchain technology continues to grow

In the meantime, it has been a big step forward for Ripple to form relationships with financial institutions. Some of the 30 largest banks in the world apparently intend to use Ripple’s Settlement Technology by working together with Bitstamp, according to reports.

Together with the creation of rippelet and on-demand liquidity (ODL), both of which require XRP, it has become easier to send money across borders faster and cheaply.

Praise process unclear

The future of XRP prices is also unclear at the moment. The three most important levels that analysts have identified if needing a lot of attention are $ 0.60, $ 0.63 and $ 0.66. If the price manages to break above these levels, it can rise to $ 0.86 or perhaps higher.

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On the other hand, if it falls below $ 0.50, a rebound may be less likely in the short term.

Featured image of Gemini Imagen, Graph of TradingView



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