XRP Stagnant Despite Bullish Signals: Analyst Identifies Key Catalysts for Breakout

Despite a wave of positive developments surrounding XRP and the XRP Ledger (XRPL), the cryptocurrency's price has struggled to gain significant momentum. A surge in institutional interest and progress on ETFs has been building momentum and fueling optimism. However, despite these bullish signals, XRP remains stagnant, trading at $2.21 after a 13.58% decline over the past 24 hours.

Crypto analyst and community commentator Gen A recently weighed in on the situation, offering insights into why XRP's price remains subdued and identifying key catalysts that could trigger the next breakout.

The overall state of the cryptocurrency market is one of the primary reasons for XRP's lackluster price movement. Gen A pointed out that Bitcoin's performance heavily influences the movement of altcoins like XRP. When Bitcoin consolidates or faces downward pressure, altcoins often struggle to attract sufficient buying momentum. With BTC still wrestling below the $100K mark, the broader market remains uncertain, limiting XRP's ability to surge.

Macroeconomic factors are important in market sentiment. Gen A highlighted concerns about inflation, rising interest rates, and institutional liquidity constraints, which have created a challenging environment for risk assets, including cryptocurrencies. Additionally, geopolitical and economic shifts, such as recent tariff hikes imposed by President Trump on imports contribute to the market's cautious approach.

Another major factor is investor preference for assets with clear regulatory frameworks. While XRP offers a strong use case, large-scale investors continue to tread carefully until there is complete regulatory certainty.

While XRP has achieved notable legal victories, its ongoing battle with the U.S. Securities and Exchange Commission (SEC) remains a key factor keeping investors hesitant. Gen A emphasized that, despite a federal ruling in July 2023 confirming that XRP is not a security, the lawsuit is yet to be fully resolved. This lingering uncertainty continues to influence market sentiment.

The SEC's recent legal decisions have further fueled speculation. While the agency has withdrawn its case against Coinbase and put its lawsuit against Binance on hold, it has not taken similar action in the Ripple case. Many analysts believe this is due to the case's complexity, particularly as it has advanced to the appeals stage.

Until a definitive settlement or resolution is reached, institutional