3 reasons why XRP just can’t reach $ 1
Ripple’s XRP has not really recovered from its record of more than $ 3 and has had no impact on the crypto market. Investors seem to have expected much more from XRP than they did. For the majority of the crypto community, it is clear that XRP will no longer reach record levels.
XRP no longer likes high
The XRP was last traded at $ 1 on February 1, and the token has failed to return to this point, although Ripple has since mastered many developments that should have driven the price up.
In this article, we have summarized the reasons why XRP was no longer able to reach $ 1.
1. XRP is still in the testing or staging phase
Ripple has established many partnerships with reputable companies. However, this is not yet a reason why the token is widely used because of this. XRP is still considered inferior to many other cryptocurrencies like Bitcoin due to the real and evolving identity that XRP has built over the years.
Investors far prefer Bitcoin regardless of volatility. The number of large investors attracted further confirms this status. If the digital asset succeeds in proving itself and leaving the test phase behind and making it a real and scalable use case, this could increase the number of its buyers, which increases the price.
2. Legal issues
A class action lawsuit against Ripple has been going on since 2018. Meanwhile, many investors and owners have filed a number of lawsuits against the company, claiming that XRP was a guarantee and that Ripple sold them XRP as an unregistered guarantee and violated the law, so a full refund is now made. requirements.
XRP has provided evidence to show that the four requirements of the Howey test (the American gold standard for determining whether an asset is digital or not and whether it is a title or not) are met. Transactions have also been presented for which no rights should be granted to classify equity as securities. Of course, this global condition still discourages many newcomers, which is why they prefer to invest in other cryptocurrencies.
3. Acceptance and general competition
In August of last year, Ripple controlled much of the total $ 100 billion of XRP in circulation, which was included in a trust account. This condition makes many believe that the price of XRP is also controlled by Ripple, which is why they turned away from this project.
The XRP has also been less accepted as a result, although the dominance in the online payments industry continues to grow, but this is not reflected in the price at all. Overall, however, XRP does not seem to be able to keep up with the competition.