NewsBTC
Mar 18, 2025
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XRP Price Stagnation Attributed to Private Ledger and Market Liquidity Issues

2 min

Interest in XRP is growing among banks and financial organizations, yet its price remains unchanged. Analysts suggest this stagnation may stem from the use of Ripple's private ledger for transactions, which obscures XRP's actual market value.

Private Ledger Impacts Price Growth

  • DigitalG, a former fund manager, posits that banks may be buying XRP on a private ledger, keeping these transactions hidden from the public market.
  • This separation could explain why increased adoption doesn't lead to higher prices.
  • DigitalG anticipates a merger between the private ledger and the public XRPL later this year, potentially increasing XRP's value.

Ripple focuses on large-scale institutional transactions and central bank digital currencies (CBDCs), complicating regulatory transparency and potential usage scenarios for banks.

Market Sentiment and Liquidity Issues

  • Observers indicate XRP's price fluctuations are linked to overall market dynamics rather than direct demand.
  • Black Swan Capitalist co-founder Vandell Aljarrah notes insufficient liquidity demand has prevented significant price movement despite institutional use.
  • XRP has been trading between $0.52 and $0.56 since July 2024.

Recent partnerships with major banks and the implementation of RippleNet and On-Demand Liquidity (ODL) aim to facilitate quicker and cheaper cross-border transactions.

Analysts highlight key price levels: $0.60, $0.63, and $0.66. A breakout above these could lead to a surge towards $0.86, while falling below $0.50 may hinder short-term recovery.