XRP Price Stagnation: Experts Identify Key Factors

The cryptocurrency market has been experiencing a stagnant period for XRP, with its price hovering around $1.35-$1.40 despite Ripple's impressive performance as a company. Experts have identified three key factors contributing to this stagnation, highlighting the need for a multifaceted approach to revive the XRP price.

The first factor is XRP's correlation with Bitcoin, which has been stuck between $65,000 and $75,000 since February. This correlation has resulted in XRP falling 10% when Bitcoin dropped 5%, demonstrating that XRP's price movements are heavily influenced by Bitcoin's performance.

The second factor is the selling pressure from underwater holders who have been cashing out an estimated $6 billion worth of XRP since its peak in July 2025. These large holders, who bought below $0.65, are taking profits whenever XRP starts rallying, creating resistance walls at specific price levels.

The third factor is the lack of institutional investment in XRP ETFs, which has collapsed from over $200 million to under $2 million since launch. Despite the initial hype surrounding commodity status, institutional investors have yet to show significant interest in XRP ETFs.

However, there is a potential catalyst that could trigger a revival in XRP's price: the passage of the Clarity Act. With a 72% chance of passing, this legislation would grant permanent federal law status to XRP's commodity status, unlocking more institutional adoption and giving banks a reason to settle in XRP.