XRP Stagnation Continues Despite Ripple's Success

The cryptocurrency market has been experiencing a stagnant period, with many altcoins struggling to gain momentum. One of the most affected coins is XRP, which despite Ripple's success as a company, remains stuck at $1.35-$1.40.

According to experts, there are three main factors contributing to XRP's stagnation. Firstly, its correlation to Bitcoin (BTC) is a significant issue. When BTC falls, XRP follows suit, and currently, BTC is trading in a tight range between $65,000 and $75,000. This has resulted in XRP being unable to rally, regardless of its own fundamentals.

Secondly, underwater holders are selling into every rally attempt. Since XRP's peak at $3.65, an estimated $6 billion worth of tokens have been sold by large holders. This has created resistance walls at $1.44, $1.58, and $1.76, which prevent the price from rising.

Lastly, the institutional inflows from XRP ETFs are not sufficient to drive the price up. Despite reaching $483 million in December, weekly inflows have collapsed to under $2 million. The majority of money comes from retail investors, with only a small percentage coming from institutions.

A potential catalyst for a breakout is the Clarity Act, which could unlock more institutional adoption and give banks a reason to settle in XRP. If passed, this would provide a significant boost to the price and potentially move it out of its current range.