XRP, within the week, dipped below the psychological $3 level again and shed 6.21% in the last seven days. This long, drawn-out consolidation has raised concerns among XRP investors. Versan Aljarrah, the founder of Black Swan Capitalist, has shared new insights into the seeming stagnation in the price of the asset.
XRP price suppression strategy
Aljarrah claims that the low price of XRP is not a weakness in the momentum of the asset. Rather, it is due to major institutions intentionally suppressing it for their own interest. According to him, these powerful traditional institutions are looking to stockpile XRP at this low price, hence the deliberate suppression.
Aljarrah appears aligned with the views of Jim Willie, who alleged that big banks, including BlackRock, the asset manager, are actively accumulating the asset to have leverage when the price soars to over $7-$8, where it ought to be at this point.
Both views imply that there is a deliberate conspiracy going on that involves the manipulation of XRP’s price. Aljarrah and Willie maintain that this is deliberate so that these powerful financial institutions can buy it cheaply before it gains adoption in the traditional finance space.
“If the U.S. dollar is overextended and liquidity is strained as a result, XRP is the alternative source and bridge that provides liquidity for institutions,” Aljarrah wrote.
The Black Swan Capitalist founder believes XRP could serve as a “bridge currency” that supplies liquidity for global transactions when the U.S. fiat currency faces stress.
XRP price performance and ETF anticipation
XRP slipped from a peak of $3.05 as the $3 support gave way due to market volatility. As of this writing, XRP price was changing hands at $2.98, which represents a 1.75% decline in the last 24 hours of trading. This has triggered caution among investors as trading volume has declined by a significant 27.53% to $4.08 billion within the same time frame.
XRP traders have been in a sell mode after the asset’s Bollinger Bands signaled the $3 support might give way earlier in the week. This technical signal, combined with XRP’s performance history for September, could be behind the significant pullback seen on the part of market participants.
Meanwhile, the broader crypto industry awaits the decision of the Securities and Exchange Commission (SEC) on spot XRP exchange-traded funds (ETFs). Many believe an approval will trigger a price surge.
Source: https://u.today/xrps-biggest-drawback-uncovered-by-top-analyst-it-is-not-price
