Analysts highlight 5 key factors that could suppress XRP prices.

A recent post from an anonymous user has sparked a debate within the XRP community (XRP), raising the question of whether the price of this cryptocurrency is being suppressed beyond the impact of the settled SEC lawsuit with Ripple.

The post delves into allegations of coordinated manipulation. It points out the large amount of XRP held by Ripple, monthly sales, the involvement of institutions, etc., as potential factors.

The reasons for the low price of XRP: manipulation or market forces?

In December 2020, the SEC filed a lawsuit against Ripple. The lawsuit revolves around the allegation that Ripple conducted an unregistered securities offering by selling XRP. The protracted battle, which is finally nearing its end, has caused significant damage to the price of XRP.

"It not only slowed down XRP — it has stolen many years of growth. While the market boomed, XRP sat on the sidelines," an anonymous user wrote in a previous post.

However, with Ripple's victory, there has been speculation that there are other factors behind the poor performance of XRP.

"Big question. The SEC lawsuit has clearly affected the price of XRP. But what if that isn't the only force holding it back?" the user posted.

Users have discussed five main factors, starting with the massive amount of XRP that Ripple holds. Users revealed that the company currently holds over 43 billion XRP in an escrow account and releases a portion monthly, a mechanism initiated in 2017 to regulate the supply.

Some people believe that these sell-offs are strategically designed to limit the price growth of XRP, keeping it artificially low. However, users emphasize that the CTO of Ripple has stated that the company's On-Demand Liquidity (ODL) transactions do not affect the market price.

Furthermore, users have noticed that some small wallets hold a large amount of XRP. Large transactions from these wallets lead to price drops, raising concerns about manipulation.

However, although there is a correlation between these movements and the depreciation, there is no clear evidence of control or intentional interference.

Adding to the complexity, users have cited a scientific study. This study found a negative correlation between transaction structure and price, with a coefficient of -0.73. Although this does not confirm suppression, it highlights the potential role of complex network dynamics in influencing the price of XRP.

"Deep speculation — some people believe that large banks are buying at low prices while spreading doubt. One theory? Institutions want XRP cheap before mass utility adoption. Sounds like a conspiracy — but it keeps coming up for a reason," the post added.

Finally, the users explained that in 2017, during the major price surge of XRP, network activity skyrocketed. However, some community clusters shrank just before the price plummeted, and some nodes dominated the network. This also raised concerns about market distortion.

"In my opinion, most of this is just rumors, speculation, and following a pattern. There is no clear evidence of the suppression of XRP prices outside of the SEC lawsuit. But the community's suspicion is not unfounded — it just hasn't been proven with convincing evidence... yet," the user concluded.

Additionally, some analysts believe that the low price is part of Ripple's long-term strategy. The company uses this as a cover to avoid attracting too much attention while building its infrastructure.

Lawyer dismisses allegations of suppressing XRP price

Despite much speculation, lawyer Bill Morgan has dismissed these claims. Morgan clarified that Ripple does not control 43% of the total XRP supply, as some believe.

"First of all, Ripple does not own 43% of the supply. Even CoinMarketCap has announced that the circulating supply ( does not include what Ripple holds outside the escrow account ) is 58.5%," he stated.

This means that the influence of Ripple is less dominant than speculated. Morgan also noted that Ripple's monthly sales from escrow accounts account for less than 1% of the monthly trading volume of the token.

This is too small to create significant downward pressure. He also emphasized the diminishing impact of the releases from Ripple's escrow account over time.

Furthermore, Morgan referred to the SEC vs. Ripple lawsuit. He emphasized that prior to filing, the regulatory agency's 18-month investigation found no evidence of Ripple's price manipulation.

"There is no evidence of price suppression outside of the cold impact of the SEC lawsuit. Ripple has provided expert evidence in the lawsuit that the price volatility of XRP often follows the cryptocurrency market, particularly the price volatility of Bitcoin or Ethereum," Morgan commented.

Currently, it is still uncertain whether Morgan's explanation alleviates concerns. At present, the debate about XRP's price continues.

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