XRP Price Rise Limited Despite SEC Lawsuit Resolution, Analyst Blames Market Dynamics

Market analyst and software engineer Vincent Van Code has addressed concerns over the stagnant price of XRP, dismissing claims that institutional players are deliberately suppressing its value. According to Van Code, the limited growth of XRP is attributable to typical market dynamics rather than any hidden agenda. Following the recent announcement by Ripple CEO Brad Garlinghouse that the U.S. Securities and Exchange Commission (SEC) had dropped its appeal in the company’s long-standing lawsuit, XRP’s price rose only marginally from $2.28 to $2.60. This modest increase, despite expectations of a stronger rally, has sparked speculation about potential external influences on XRP’s value.

Van Code explained that market forces, including automated trading, arbitrage, and large-scale investments, drive price movements rather than individual actions. He emphasized that XRP’s stagnant price is not the result of a coordinated effort by institutions but rather the typical behavior seen in cryptocurrency markets. One key factor he identified was the impact of low trading volume, which makes it easier for large traders to manipulate price movements. He pointed to numerous small transactions—some involving less than 6 XRP—which he attributed to a practice known as “trade dusting.” This tactic artificially increases trading volume, creating an illusion of liquidity while allowing price control by those placing the orders.

Van Code also noted that XRP’s price was influenced by broader market conditions, particularly fluctuations in Bitcoin and Ethereum. He reassured investors that these manipulations were temporary and did not reflect XRP’s long-term potential. Amid speculation that institutions influence XRP’s price downward to accumulate more tokens at lower prices, Van Code rejected the theory outright. He explained that the observed price fluctuations were not part of a strategic suppression effort but were driven by trading strategies intended to generate profit.

Responding to investor concerns, Van Code highlighted the role of high-frequency trading (HFT) bots, particularly those operated by Binance VIP customers. These traders, he claimed, have access to advanced trading data, allowing them to execute orders faster than retail investors. This advantage enables them to manipulate price movements, engaging in rapid buy-and-sell cycles that raise or depress prices. Additionally, Van Code alleged that most cryptocurrency exchanges rely on Binance for liquidity, further amplifying the influence of its trading practices. While he did not accuse Binance of direct manipulation, he argued that the exchange creates an environment where such activities can thrive. He also pointed out that Binance benefits financially from these market conditions, profiting from trading fees, liquidity incentives, and arbitrage opportunities.

Van Code warned that retail investors are unlikely to succeed in short-term trading against high-frequency trading firms due to their significant advantages. Instead, he recommended a long-term holding strategy as the best approach for investors seeking to navigate these market conditions. He explained that when trading volumes are low, market makers receive substantial incentives to provide liquidity, which can make price movements more erratic. As a result, he suggested that holding onto assets over the long term is a more viable strategy, as it minimizes the impact of short-term fluctuations caused by high-frequency trading. While XRP’s price action has not met some investors’ expectations, market analysts emphasize that the asset’s long-term performance will be shaped by broader adoption and ecosystem growth rather than temporary market fluctuations.