3 reasons why the price of XRP did not go up to $ 1

Ripple's XRP, since reaching its all-time high, at just over $ 3, has failed to recover significantly. The potential of the token made investors and experts want more, but it didn't. With poor performance in recent months, many players in the crypto world believe that XRP may not reach its highest level again.

The last time the XRP was traded at $ 1 was February 1, 2018, and it has not repeated this feat since. Ripple has seen many developments that should have had a positive impact on the price of XRP. Which has not been the case so far.

The XRP’s inability to go up to $ 1 is linked to several reasons. Here are three of the reasons why the price of XRP has not gone back to $ 1 despite efforts.

XRP still in the probationary phase

XRP is the third largest cryptocurrency on the market, and Ripple has many partnerships with reputable companies. However, XRP has not yet been unanimous in the cryptocurrency market. It is indeed not seen as well as other digital assets on the market like bitcoin.

Investors often prefer to bet on bitcoin, which is well known, regardless of the volatility of the market. If the XRP manages to prove itself, get out of this test phase and establish itself in a “real and evolving use case”, the number of its buyers will exceed the number of its sellers, which will increase the price.

Legal clarification on the security of XRP

XRP's parent company, Ripple, has been stuck in a class action lawsuit since 2018. During this period, some XRP investors and owners have launched a series of lawsuits against the company, arguing that XRP is a security and that Ripple, its XRP II subsidiary, and Ripple CEO Brad Garlinghouse and others have issued and sold XRP as an unregistered security, thereby violating the law.

The XRP has, however, gathered sufficient evidence to demonstrate that it meets the four requirements of the Howey test (the American benchmark for determining whether a particular item of property, digital or otherwise, is movable property), including its transactions, which must not give right to equity to be classified as movable property. Ripple is currently facing a single consolidated class action after seeing a number of them abandoned by investors.

Many new entrants to the cryptocurrency world are still ready to invest in digital assets and would prefer to opt for a much “safer” digital coin on the market.

Adoption and general competition

In August of last year, Ripple controlled much of the $ 100 billion XRP supply that was in receivership. The fact that Ripple has such a share led many people in the crypto industry to believe that the company could also control the price of XRP. This had the effect of driving away potential investors, and driving down its price.

It has also affected the adoption rate of XRP, the digital asset lagging behind its rivals. Despite its growing dominance in the field of online payments, XRP still fails to cope with other assets in the market.