Ripple-affiliated XRP cryptocurrency has underperformed 90 out of the 100 biggest cryptocurrencies by market capitalization over the past 24 hours. Prominent trader Peter Brandt recently suggested that the price of XRP could end up plummeting to zero against Bitcoin.
That said, this seemingly dismal price action might not be as bad as it looks.
As noted by analyst Bill Morgan, these figures are highly skewed by the massive rally that the token experienced following Ripple’s partial win against the U.S. Securities and Exchange Commission last July.
While XRP’s price performance might not be that atrocious, the analyst is still puzzled by XRP’s complete failure to sustain its momentum following the July court ruling.
Alex Dovbnya“The better question is not why XRP price is underperforming other top 100 coins but why the post summary judgment price rise impact was not sustained and almost entirely lost and why XRP is still trading at prices visited in 2018,” Morgan said in a post on the X social media network.
Short-lived price rally
After U.S. District Judge Analisa Torres ruled that XRP is a security only when Ripple would sell it to institutional buyers, the price of the controversial token experienced a major rally.
XRP surged to a 2023 peak of $0.94 on the Bitstamp exchange following the ruling. However, this renewed excitement surrounding XRP was very short-lived, with the token collapsing 57% since the post-ruling peak.
Tomiwabold OlajideAt press time, XRP is trading at $0.49 on the Bitstamp exchange. For comparison, the token peaked at roughly $0.71 in July 2018 despite the fact that cryptocurrencies were in the middle of a bear market.
Ripple not suppressing XRP
While some community members have expressed concerns about Ripple potentially artificially suppressing the price of the XRP token with its artificial sales, Morgan is convinced that this is not the case.
As reported by U.Today, Morgan has pointed out that Ripple offers no discounts to on-demand liquidity (ODL) customers, which means that the company's ODL sales have neutral impact on the company's price.
Godfrey Benjamin
Gamza Khanzadaev
