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London Fund Manager Breaks Down Why Price Isn’t Rising

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This article is also available in Spanish.

Banks and other global financial organizations are becoming increasingly interested in XRP, cryptocurrency and digital payment systems. However, Altcoin’s price has not changed, and many investors and analysts are confused.

While some believe that the use of Ripple’s private ledger masks the actual value of XRP, others attribute it to issues of liquidity and market sentiment.

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Private ledgers may limit price growth

According to former London fund manager Digitalg, Ripple’s use of private ledgers for institutional transactions may be why XRP Stagnant.

Digitalg asserts that banks may get a lot of XRP on hidden ledgers instead of public XRP Ledger (xrpl)keep these transactions out. This separation could explain why increased adoption rates did not translate into higher prices.

Digitalg believes that a merger between private ledgers and XRPL may occur later this year, which could increase the value of XRP.

The main goal of ripple in private records is defined by large-scale transactions between institutions and central bank digital currencies. (CBDCS). This configuration makes it harder for banks to see how to use XRP in different situations, even if it simplifies things and improves security for them. Some believe that a lack of openness may lead to regulatory issues.

Market sentiment and liquidity challenges

Other observers say the price oscillation of XRP is caused by general dynamics in the market. Vandell Aljarrah, co-founder of Black Swan Capitalists, said that even if institutions are using XRP for trading, there is not enough liquidity demand to cause supply disruption.

XRP’s market value is currently $133 billion. chart: TradingView.com

He noted that starting in July 2024, XRP had been priced between $0.52 and $0.56 at that time.

Banks’ adoption of blockchain technology continues to grow

At the same time, establishing relationships with financial institutions is a big step forward for Ripple. Some of the world’s 30 largest banks are reportedly planning to use Ripple’s settlement technology through a partnership with Bitstamp.

Both require the creation of XRP’s Ripplenet and on-demand liquidity (ODL), making it easier to send money to the border faster and cheaper.

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The price trajectory is unclear

The future of XRP pricing is not yet clear. Analysts determine three key levels that need to be paid close attention to are $0.60, $0.63 and $0.66. If the price manages to exceed these levels, it may increase to $0.86 or more.

On the other hand, if it is below $0.50, then the chances of a short-term rebound may be less likely.

Featured images by Gemini Imagen, charts by TradingView

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