Why XRP Isn’t Rising in Price: The Real Reasons Behind the Stagnation
XRP, the native token of the Ripple ecosystem, has long been a topic of intense debate and speculation. Despite Ripple’s numerous partnerships, increasing adoption in cross-border payments, and favorable developments in its ongoing legal battle with the SEC, the token’s price has remained frustratingly stagnant. Many investors expected that by now, XRP would have surged significantly—especially following major victories in court and new infrastructure rollouts. So, why hasn’t that happened? The truth is, there are several interconnected factors contributing to the slow price movement of XRP, and they go far deeper than just market sentiment.
One major reason is that Ripple is still in the early stages of building out its global financial infrastructure. Although RippleNet is operational and being used by institutions in various countries, the broader system that will support large-scale use of XRP is still under construction. This includes regulatory frameworks, liquidity solutions, user-friendly interfaces for institutions, and deeper integration with existing financial systems. While Ripple’s vision is compelling, building a fully compliant and scalable financial network across different jurisdictions takes time—often years. As a result, these behind-the-scenes efforts don’t immediately reflect in price charts, but they are necessary for sustainable, long-term growth.
Another issue affecting XRP’s price is the behavior of large holders—commonly known as “whales.” Over the past several months, on-chain data has revealed that some of these early holders have been offloading XRP during periods of price strength. This kind of activity places consistent selling pressure on the market, preventing the token from gaining upward momentum. At the same time, user activity on the XRP Ledger has declined, further impacting demand. With supply outweighing demand, price stagnation becomes inevitable, regardless of how promising the long-term narrative may be.
Regulatory uncertainty also continues to cast a shadow over XRP. While Ripple scored a partial victory when the U.S. court ruled that XRP is not a security in secondary market sales, the SEC’s appeal and the slow-moving legal process have left investors in a state of limbo. New legislative proposals like the GENIUS Act may eventually offer clearer guidance, but until those bills are passed and enforced, there remains significant hesitation among institutional investors. Without regulatory clarity, many financial institutions are reluctant to fully integrate XRP into their core operations, which in turn delays the kind of adoption that could drive prices higher.
The macroeconomic environment is another critical factor. In 2025, geopolitical tensions, inflation, and central bank policies have created a volatile global financial landscape. U.S. President Donald Trump’s new tariffs and ongoing trade disputes with key economies like China and the EU have triggered widespread uncertainty. When risk sentiment decreases in traditional markets, cryptocurrencies often get caught in the crossfire, especially altcoins like XRP that are seen as more speculative compared to Bitcoin. This external pressure has also contributed to XRP’s struggle to gain traction, even during positive news cycles.
Moreover, XRP faces strong competition from other digital payment solutions and stablecoins. Projects like Stellar (XLM), which was founded by Ripple co-founder Jed McCaleb, offer similar functionalities and continue to evolve. Ethereum-based stablecoins such as USDC and DAI also provide efficient on-chain settlement without the regulatory baggage that XRP carries. As a result, institutions and developers may choose to build on or integrate with these alternatives, slowing down XRP’s network effects. This growing competition dilutes XRP’s unique selling proposition and limits its price appreciation potential.
Another factor that is often overlooked is Ripple’s use of private ledgers. While Ripple publicly promotes the XRP Ledger (XRPL) as a decentralized network, many of its enterprise solutions are built on private ledgers that are not visible to the public. It is possible that large financial institutions are already transacting in XRP using these private systems, meaning these transactions don’t affect market prices on public exchanges. If this is the case, XRP’s utility may be growing behind the scenes, but with minimal impact on visible trading volumes and liquidity—a disconnect that frustrates retail investors looking for price signals.
From a technical analysis standpoint, XRP is showing mixed signals. Its 50-day simple moving average (SMA) is around $2.23, while the 200-day SMA is close to $1.91. The 14-day Relative Strength Index (RSI) is at 57.29, suggesting a neutral-to-bullish momentum. However, forecasts indicate a possible drop to $2.21 in the coming weeks, which could represent a further 9% decrease from current levels. These technicals confirm what many traders already feel: the market is lacking a strong catalyst to break out of its current range.
It’s also worth mentioning that retail enthusiasm has cooled. During the 2017 and 2021 bull runs, XRP had a strong retail investor base that fueled massive rallies. But after years of regulatory scrutiny, price stagnation, and unfulfilled expectations, many of those retail investors have shifted their attention to other assets like Bitcoin, Ethereum, or meme coins that offer quicker returns. Without renewed interest from retail or a significant institutional trigger, XRP lacks the volume and volatility needed for a breakout.
Despite all this, it would be a mistake to write off XRP entirely. The building blocks for future growth are undeniably being laid. Ripple continues to expand into new markets, forming strategic partnerships in Asia, the Middle East, and Latin America. The company is also working on real-world asset tokenization, central bank digital currencies (CBDCs), and more seamless fiat on/off ramps for XRP—all of which could prove to be major growth drivers in the next market cycle. Additionally, as the regulatory landscape becomes more defined, XRP stands to benefit from being one of the few tokens with legal precedent in the United States.
In conclusion, while the current price of XRP may be disappointing to holders, there are logical explanations for its lack of upward movement. The focus on infrastructure, regulatory headwinds, whale activity, macroeconomic pressures, private ledger usage, and stiff competition all contribute to its current state. Yet, these same challenges are also opportunities. Once they are resolved—or even partially addressed—XRP could be poised for a resurgence. For long-term investors, patience and perspective may be the most valuable assets of all.