Despite Bitcoin hitting fresh all-time highs and Ethereum recording notable gains in recent weeks, Ripple’s XRP remains frustratingly stagnant. The token has failed to reclaim any lasting upward momentum and continues to trade within a bearish descending pattern. So, why isn’t XRP moving, and what might trigger a breakout? Here’s what ChatGPT had to say.
XRP Struggles to Hold Key Support
XRP has broken below the critical $2.3 support level, and analysts now expect a potential move toward $2.0—a zone not seen since early April, when global markets were shaken by rising U.S. tariffs under former President Trump.
Although broader economic conditions improved in the months that followed—helping BTC and ETH rally—XRP failed to keep pace. Its surge toward $2.6 was quickly rejected, and the asset has since declined over 6.5% in just one week, remaining locked in a downtrend.
ChatGPT’s Take: Sentiment Shift and Tokenomics Pressure
When asked about XRP’s underperformance, ChatGPT pointed to multiple factors. While general market weakness could partially explain short-term stagnation, the AI noted that XRP has been underperforming not only against BTC and ETH but also against several altcoins like HYPE over the past month.
One major factor? A change in investor sentiment. Post-election optimism around Ripple’s partial legal victory against the SEC has faded, with many investors now choosing to sell into small rallies instead of holding long-term.
Another issue is XRP’s tokenomics. Each month, 1 billion new XRP tokens are released, which adds ongoing selling pressure to the market. As ChatGPT explained:
“This consistent increase in available tokens can suppress price growth, especially if demand doesn’t keep pace.”
What Could Trigger a Breakout?
According to ChatGPT, a significant shift in investor behavior would be needed to spark a breakout. For example, large-scale whale accumulation—similar to what occurred in late 2024—could signal a reversal in momentum. Additionally, major partnerships, acquisitions, or a broader market rebound might be the catalysts XRP needs to escape its current range.
Until then, XRP’s path remains uncertain—caught between weak sentiment, technical resistance, and structural selling pressure.
