Original title: Crypto: Why Is Adoption Still Not Driving Up The Price Of XRP?
Original author: Mikaia A.
Original source: https://www.cointribune.com/
Compiled by: Mars Finance, Daisy
Cryptocurrency: Why is XRP's adoption still not driving its price higher?
The XRP ecosystem is full of potential for the cryptocurrency market, attracting interest from investors and institutions. With technology that has attracted 61 Japanese banks, XRP seems to have everything going for it. However, despite this massive adoption, XRP’s price has unexpectedly remained stable. So, why hasn’t XRP taken off as expected?
XRP cryptocurrency mystery: Mass adoption, slow price movement
Despite growing adoption, especially the apparent interest of 61 Japanese banks, XRP’s price remains oddly stagnant. Even with the unexpected surge in trading volume in early September, one would expect the price to surge. The explanation for this may lie in a simple phenomenon: lack of net flow.
Vandell, co-founder of Black Swan Capitalist, explained that while institutions are using XRP for trading, the volume is not yet high enough to drive the price higher.
In other words, adoption is there, but the demand for liquidity has not caught up to trigger a supply shock. This situation is likely to continue unless:
Demand for XRP as a financial instrument has increased significantly;
Overall trading volumes remain moderate;
The amount of XRP circulating in the market continues to be controlled.
This situation, paradoxically, could one day lead to shortages that ultimately drive prices to new highs.
Ripple: Technology is ready, but the market is hesitant
Ripple has been notable, especially since it stopped releasing new XRP tokens on exchanges in 2019. In the long term, this strategy could turn XRP into a scarce asset, thereby increasing its price potential.
Experts believe that the real upside lies in the combination of multiple elements: wider adoption, increasing liquidity pools, and limited supply.
Despite these bullish indicators, XRP has been stuck in a correction phase since July, with prices fluctuating between 52.2 and 56.2 cents. The key watch points remain 60.5, 63, and 66 cents.
If these levels are broken, XRP could reach 86 cents or higher. However, it is important to note that a break below 50 cents could erode any hopes of short-term gains.
The most optimistic believe that XRP can reach $100, but the road to achieving this goal seems to be full of obstacles. Only time will tell at what price XRP will achieve...
