- XRP price has underperformed other coins like Cardano, Bitcoin, and Ether.
- There are concerns about the SEC case, stablecoins, and lower repurchases.
Ripple price has lagged that of other big-cap coins like Bitcoin, Ethereum, and Cardano. XRP crypto price has risen by about ~13% in 2023 while Bitcoin has soared by over 30% while Ether has jumped by near 29%. Ripple has a market cap of more than $19 billion.
SEC vs Ripple case ongoing
The main reason why the XRP price has lagged this year is the lingering cloud of the ongoing SEC vs Ripple case. This case has been going on for more than two years now. In its documents, the SEC accused the company of raising more than $1 billion in 2013.
It is still unclear when the case will conclude although analysts believe that it will happen in the first half of the year. As such, there is a likelihood that crypto investors are worried about how the case will end. So, what should we expect in the coming days?
Another challenge for Ripple is that its business strategy is being challenged by stablecoins like Tether and USD Coin. For starters, Ripple partners with banks and other financial services companies and provides them with the On-Demand Liquidity (ODL) product.
Read more: How to buy Ripple.
These companies then use the product to simplify their cross-border transfer needs. Experts believe that the future of such transactions will be replaced by stablecoins, which are seen as being safe. For example, MoneyGram has already started using USDC.
Another reason why XRP price has struggled is likely because purchases by Ripple have declined. Ripple Labs has been one of the top buyers of XRP in the secondary market.
XRP price prediction
On the daily chart, we see that the XRP price faced a strong resistance at $0.4323 on January 24. Since then, the bullish momentum that started early this year has faded and the coin has crossed the 25-day and 50-day moving averages. It has also formed a small head and shoulders pattern. Also, it is slightly above the ascending trendline shown in blue.
Therefore, the outlook of Ripple is still bearish, with the next key level to watch being at $0.34. A move above the resistance at $0.4100 will invalidate the bearish view.
