3 Reasons XRP Rallies Stall — What Must Change For A Sustained Recovery

After failing to push past the critical short‑term resistance at $1.60 last week, XRP has slid about 8%, settling back into the $1.35–$1.40 trading range. Market analyst Sam Daodu says three connected problems explain why recent rallies have fizzled and what must change for a sustainable recovery.

Exchange‑traded funds (ETFs) focused on XRP add another structural constraint. Total assets under management (AuM) fell from ITS January peak of $1.65 billion to about $1 billion as the token’s price declined. 

At the current inflow pace—roughly $1.9 million per week—ETFs would only add about $100 million by year‑end, a level Daodu argues is insufficient to meaningfully soak up supply. 

Is Regulatory Clarity The Key? 

Looking ahead, Daodu points to one potential catalyst that could change the dynamics: the long-awaited US crypto market structure bill, the CLARITY Act, which has faced significant opposition in recent months due to key provisions that have prevented its passage. 

If the bill becomes law and formally cements XRP’s status as a commodity, Daodu argues, it would reduce regulatory uncertainty and could unlock broader institutional adoption. 

That in turn might encourage banks to settle in XRP rather than relying on alternatives such as Ripple’s RLUSD stablecoin, creating the kind of demand pressure that could finally push the price out of its current range.

Related Reading

In short, Daodu’s view is that XRP needs multiple things to shift at once: a change in capital flows away from Bitcoin, less selling from large holders, and materially larger ETF inflows—or a regulatory development that brings institutions on board. 

Until several of those factors move together, the analyst says, XRP rallies are likely to remain short‑lived and the token stuck near its recent trading band.

Featured image from OpenArt, chart from TradingView.com 

About Author

See author's posts