What is behind the low price of Ripple token XRP?

A recent publication of a pseudonym user has revived the debate within the XRP community, asking questions about whether the price of the cryptocurrency is being suppressed beyond the effects of the demand of the SEC against Ripple, which has already been resolved.

The publication deepens the accusations of coordinated manipulation. Point out the holdings Ripple XRP substantials, monthly sales, institutional participation, etc., as possible factors.

What is behind the low XRP price: manipulation or market forces?

In December 2020, the SEC filed a lawsuit against Ripple. He focused on the accusation that Ripple made an offer of unregistered values ​​by selling XRP. The prolonged battle, which is finally coming to an end, caused great damage to the XRP price.

“Not only slowed XRP, but stole years of growth. While the market shot, XRP remained on the sidelines,” wrote the pseudonym user in a publication.

However, with the victory of Ripple, the speculation that Other factors are behind XRP disappointing performance.

“The big question. The demand of the SC clearly impacted the price of XRP. But what if that is not the only force that keeps it below?” The user published in another publication.

The user discussed five key factors, starting with the huge holdings of XRP by Ripple. The user revealed that The company currently has more than 43 billion XRP in custody And it releases a portion monthly, a mechanism initiated in 2017 to regulate the supply.

Some claim that these sales are strategically designed to limit XRP price growth, keeping it artificially low. However, the user emphasized that Ripple’s CTO has declared that the company’s liquidity transactions (ODL) of the company do not influence the price market.

In addition, the user caught attention to some small purses that contain large amounts of XRP. The significant transactions of these purses lead to price drops, which feeds manipulation concerns.

However, although there is a correlation between these movements and price falls, There is no definitive evidence of deliberate control or interference.

Adding to complexity, the user cited a scientific study. He found a negative correlation between the transaction structure and the price, with a coefficient of -0.73. Although this does not confirm the suppression, Highlights the potential role of complex dynamics of the network to affect the price of XRP.

“Speculation is deep: some believe that big banks are buying cheap while sowing doubts. A theory? Institutions want to cheap before the massive adoption of their usefulness. It sounds conspiracy, but continues to resurface for a reason,” the publication added.

Finally, the user explained that in 2017, During the Great XRP price rally, the network activity shot. However, certain community groups were reduced just before key price falls, and a few nodes dominated the network. This also triggered market distortion concerns.

“In my opinion, most of this is only rumor, speculation and search for patterns. There is no strong evidence of the suppression of the XRP price beyond the case of the SEC. But the suspicions of the community are not unfounded, they are simply not backed by conclusive evidence … yet,” the user concluded.

In addition to this, some analysts also believe that the low price is part of Ripple’s long -term strategy. The company uses this as coverage to avoid attracting too much attention While building your infrastructure.

Lawyer denies the suppression statements of the XRP price

Despite speculation, lawyer Bill Morgan has refuted these statements. Morgan clarified that Ripple does not control 43% of XRP’s total supplyas some believe.

“First of all, Ripple does not have 43% of the supply. Even CoinmarketCap publishes that the circulating supply (excluding what Ripple has out of custody) is 58.5%,” he said.

Therefore, this means that Ripple’s influence is less dominant than is speculated. Morgan also pointed out that Ripple monthly sales from custody They represent less than 1% of the monthly volume of trading of the Token.

This is too small to exert a significant downward pressure on the price. He also emphasized the decreasing impact of Ripple’s custody releases over time.

In addition, Morgan made reference to the demand of the SEC against Ripple. He stressed that before submitting the demand, the 18 -month investigation of the regulator did not find evidence of price manipulation by Ripple.

“There is no evidence of price suppression apart from the paralyzing effect of the demand of the sec. Ripple presented evidence of experts in the demand that the XRP price movement generally follows the crypto market, especially the Bitcoin or Ethereum price movement,” Morgan said.

Now, if Morgan’s explanation will calm the concerns remains uncertain. For now, the debate on the price of XRP continues.