Waited 2 years, still the same! The real reason XRP's rise is blocked

▲ XRP/AI Generated Image ©

XRP (Ripple) has been stuck around the $1 mark for over two years, contrary to expectations, and an analysis suggests that a significant price surge is unlikely without clear market turning signals.

According to investment specialized media The Motley Fool on May 2 (local time), despite repeated predictions of a rise over the past 24 months, XRP is currently hovering around $1.39, approximately 62% lower than its peak last year. The core reason for this sluggish performance has been attributed to investors' 'risk-off' sentiment.

The outlet analyzed that in an environment where Bitcoin still dominates the market, high-risk altcoins like XRP are bound to show relative weakness. Indeed, over the recent 90-day period, XRP fell by 28%, Ethereum by 24%, and Solana by 34%, indicating an overall bearish trend for altcoins.

In this context, an 'altcoin season' has been proposed as a market turning point. An altcoin season is defined as when more than 75 out of the top 100 cryptocurrencies outperform Bitcoin's returns over a 90-day period. However, currently, only 41 coins meet this condition, meaning a full-fledged capital rotation has not yet begun.

Another variable cited is the schedule for the U.S. cryptocurrency market structure bill, the Clarity Act. Although this bill was initially expected to be a catalyst for activating the altcoin market, the possibility of its passage being delayed to late 2026 or 2027 has weakened its role as a short-term catalyst.

Ultimately, it is assessed that XRP's independent upward momentum may be limited unless investor sentiment shifts to 'risk-on'. The media analyzed that a Bitcoin-centric strategy remains effective for now, and it is advisable to approach altcoin investments after changes in market conditions.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*