XRP Continues to Struggle with the $1 Barrier: What’s Holding It Back?

Since the end of the bull market, XRP has struggled to break the psychological barrier of $1. In July 2023, the digital currency seemed to be close to a breakthrough, when judge Analisa Torres issued a positive ruling for Ripple.

The value of XRP doubled in a short time and reached a peak of over $0.82. Now, more than a year later, XRP has lost ground and the price is hovering around $0.50.

Speculations within the XRP community

There is plenty of speculation within the XRP community about the reasons behind the failure to break above $1. A popular theory is that the so-called “switch” still needs to be turned. This refers to a hypothetical event that could cause a massive price increase, for example due to the mass adoption of XRP by banks.

Another explanation is the alleged lack of trading activity on the XRP Ledger (XRPL). However, this appears to contradict Ripple’s latest quarterly report, which reported a 99% increase in transactions on the Ledger.

Impact of the lawsuit

The legal battle between the US Securities and Exchange Commission (SEC) and Ripple remains a crucial factor influencing the price of XRP. Many analysts agree that this lawsuit is slowing the currency’s growth and making investors cautious. This was also evident from the positive ruling in July 2023, when the price of XRP doubled in one day, which emphasizes the enormous impact of legal developments.

With Donald Trump re-elected as president today, this could be a turning point for Ripple and the crypto sector in general. Trump has repeatedly indicated he wants to fire SEC Chairman Gary Gensler as part of his plans to end what he describes as the Biden administration’s “anti-crypto crusade.”

With Trump back in the White House, there is a good chance that crypto policy in the US will become a lot friendlier. This could mean that the SEC abandons its appeal in the case against Ripple. Such a scenario could remove the long-standing legal uncertainty surrounding XRP and potentially unleash a new bull run for the coin.