XRP Struggles to Gain as Institutional Support Remains Low

Ripple’s XRP has been struggling to make significant gains, facing consistent challenges in breaking above a key resistance level for the past few months. Despite these obstacles, it has held steady above a critical support level, giving some hope to investors. For XRP to see a solid upward trend, it will likely need stronger institutional support to drive demand and stabilize its price.

Throughout October, institutional interest in XRP was relatively low. The capital flowing into XRP was much less compared to other assets like Solana and Litecoin, which saw higher investments. This reflects a cautious approach by institutions, possibly due to uncertainties surrounding XRP’s growth potential. For XRP to perform well in the upcoming months, increased institutional interest and partnerships could be essential.

According to Victor Tan, CEO of TrinityPad, XRP might see modest growth if Ripple is able to attract more institutional partnerships or gain regulatory clarity. Without major updates, XRP could remain range-bound, though a favorable market shift might boost it by 10-15%. Tan noted that while XRP has been trading below its fair value, this has not yet triggered a significant buying interest.

The Market Value to Realized Value (MVRV) ratio for XRP indicates that it is currently undervalued. This metric, which compares XRP’s current market value with its realized value, suggests that it is trading below its intrinsic worth. However, XRP has not yet reached the “opportunity zone”—a threshold often associated with increased accumulation when holders face considerable losses. If XRP falls into this range, it may prompt investors to start buying, potentially helping to stabilize its price.

At present, XRP’s undervalued status alone does not seem sufficient to ignite a major price reversal. A shift in sentiment or significant news would likely be needed to inspire investor confidence and spark a stronger recovery in XRP’s value.

XRP’s price also faces pressure around a key technical support level, which has recently shown signs of weakening. While this level has helped stabilize XRP in recent weeks, any further dips could increase bearish sentiment among investors. If the broader market turns bullish, XRP may consolidate in a narrow price range, limiting major upward movement. Without a significant change in market conditions, XRP could experience a prolonged period of stagnation, with the potential for a more notable decline if support levels fail.