XRP, the cryptocurrency associated with Ripple, has recently faced significant hurdles in its attempts to break through critical resistance levels. Last week, after a failed bid to surpass the $1.60 mark, XRP has slipped approximately 8%, settling into a trading range between $1.35 and $1.40. Market analyst Sam Daodu has identified three interconnected challenges that are stalling XRP’s recovery and what changes are necessary for a sustained upward trend.
One of the primary factors influencing XRP’s stagnation is the dominance of Bitcoin (BTC) in the cryptocurrency market. Currently, Bitcoin controls about 58.6% of the market share, a level that has persisted throughout 2026. Historically, altcoin rallies tend to occur when Bitcoin’s dominance dips below 50%, prompting a rotation of capital from BTC to smaller cryptocurrencies. However, this rotation has yet to materialize, as many institutional investors are either reallocating their assets back to Bitcoin, perceived as a safer investment, or exiting the market altogether. Daodu asserts that without a decisive break and sustained hold above $75,000 for Bitcoin, XRP’s fundamentals alone are unlikely to drive significant price movement.
Another concern is the profit-taking behavior of large holders, or “whales,” who have been selling off their XRP holdings since the token reached a peak of $3.65 in July 2025. Daodu estimates that around $6 billion worth of XRP has been liquidated by these whales, contributing to ongoing selling pressure that hampers the potential for price rallies. Many of these large holders originally purchased XRP at prices below $0.65, incentivizing them to take profits during price increases.
Additionally, a significant number of XRP holders are currently experiencing losses, further complicating the price dynamics. Data from Glassnode indicates that approximately 60% of circulating XRP is held at a cost basis exceeding current market prices, with an average cost basis around $1.44. This situation leads many investors to sell when prices approach breakeven, creating resistance around the $1.45 mark.
Looking ahead, Daodu suggests that regulatory clarity could be a potential game-changer for XRP. The proposed US crypto market structure bill, known as the CLARITY Act, if passed, could solidify XRP’s classification as a commodity. This change might alleviate regulatory uncertainties and promote greater institutional adoption, potentially increasing demand for XRP as a settlement option. Until these factors shift—capital flows away from Bitcoin, reduced selling pressure from whales, increased ETF inflows, or a favorable regulatory environment—XRP may continue to languish in its current price range.