TL;DR
- Bitcoin charted a new all-time high, and even Ethereum managed to post some impressive gains in the past month. However, Ripple’s cross-border token has failed to recapture any of its previous momentum.
- Here’s what ChatGPT thinks about the current situation and what might be the cause of it. Also, will there be a breakout soon?
Current Price Landscape
Numerous prominent crypto analysts have outlined in the past several weeks how important the support levels of $2.3 and $2 are for XRP’s future price movements. The former, though, has already been broken to the downside and many of them believe the asset is primed for another retracement toward the latter.
Recall that the last time XRP slumped beneath $2 was in early April as the financial world braced for the impact of Trump’s growing and constant tariffs against essentially every country.
Although the economic situation improved dramatically in the following two months and many cryptocurrencies, such as the aforementioned new BTC peak and ETH’s revival, marked impressive gains, XRP remained on the sidelines to some extent and was quickly stopped during its surge toward $2.6. It was (and still remains) confined in a descending pattern that has seen another 6.5% decline on a weekly scale.
Why So?
ChatGPT first listed the broader market conditions as one of the reasons behind XRP’s stagnation, but that sounds accurate only if we take into account the past week, in which many digital assets have turned red. However, XRP has been outperformed by ETH, BTC, and many, many alts, such as HYPE , on a monthly scale as well.
The AI solution noted that investor sentiment and behavior have changed lately toward XRP, as the post-US election hype has evaporated. Now, even though Ripple essentially won its legal fight against the SEC, investors are “opting to sell during minor price increases rather than holding for long-term gains.”
ChatGPT mentioned XRP’s tokenomics, in which a billion new coins are released monthly. According to its answer, this continues to add selling pressure for XRP and may hinder its progress.
“This consistent increase in available tokens can suppress price growth, especially if demand doesn’t keep pace.”
On the question of what could help XRP break out of its consolidation, the AI chatbot said it might take a significant change in investor behavior, such as whales going on a massive accumulation spree similar to the one at the end of 2024, as well as an overall improvement in the market. Additionally, big partnership or acquisitions can aso fuel a new rally.
