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

▲ XRP/AI-generated image ©

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

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

The outlet analyzed that in an environment where Bitcoin still dominates the market, high-risk altcoins like XRP are inevitably weaker. Indeed, over the past 90 days, XRP fell by 28%, Ethereum by 24%, and Solana by 34%, continuing a general downtrend for altcoins.

In this regard, an 'altcoin season' has been suggested 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, indicating that a full-fledged capital rotation has not yet begun.

Another variable mentioned 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 until late 2026 or 2027 has weakened its role as a short-term catalyst.

Ultimately, it is assessed that XRP's independent upward momentum will be limited unless investor sentiment shifts to 'risk preference'. The outlet analyzed that a Bitcoin-centric strategy remains valid for the time being, and altcoin investments should be approached 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.*