XRP struggles at $0.57 amid underperformance and declining market influence. Legal challenges and reduced whale activity contribute to the cryptocurrency's challenges.
The recent surge in the broader market has propelled Ripple [XRP] prices upwards by 5.42% within the past 24 hours, sparking renewed optimism for a potential breakthrough above the persistent $0.57 mark.
Presently, the sixth-largest digital asset is being traded at $0.56, despite previous unsuccessful attempts by bulls to surpass the aforementioned resistance level.
However, despite the hopeful momentum, sentiments remain cautious regarding XRP's short-term prospects.
An analysis conducted by AMBCrypto reveals that XRP has been the worst-performing large-cap cryptocurrency over the past month, with gains barely exceeding 4%.
Meanwhile, prominent cryptocurrencies such as Bitcoin [BTC], Ethereum [ETH], Solana [SOL], and Binance Coin [BNB] have all witnessed impressive surges, reaching gains of up to 20% during the same period.
Further highlighting XRP's diminishing prominence is the observation made by crypto analyst Benjamin Cowen.
Cowen pointed out that XRP's market dominance has plummeted from over 31% in 2017 to a mere 1.48% as of February 2024.
Indeed, XRP has suffered a significant decline, losing nearly three-quarters of its market value since its peak in January 2018.
This decline can be attributed to a combination of factors, including the lawsuit filed by the U.S. Securities and Exchange Commission (SEC) and the overall bearish sentiment prevailing in the market during 2022.
Although the legal victory in the SEC case provided a temporary respite for XRP enthusiasts, the subsequent performance has failed to instill confidence.
According to AMBCrypto's analysis of Santiment's data, the percentage of XRP supply in profit has declined from almost 90% in November 2023 to below 84% at present.
While one might anticipate that XRP whales would seize this period of relative calm to accumulate assets, recent trends suggest otherwise.
Addresses associated with major whale cohorts have been steadily decreasing since the beginning of the year, indicating a lack of urgency among whales to accumulate and hold XRPs.
Furthermore, an examination of Hyblock Capital's data by AMBCrypto reveals that XRP whales exhibit lower long exposure compared to retail investors.
Traditionally, this is considered a bearish signal, as whales are typically perceived to have better insights into market movements due to their substantial holdings.
