Why XRP Price Remains Stuck? Analyst Points to Centralized Control

XRP has not broken out since its November 2024 rally, raising new questions about what is holding it. Analyst José Luis Cava thinks that the answer lies in a single word – control.

In a recent video, Cava argued that a dominant “hand” continues to influence XRP market behavior, despite the solid technical foundation of the token. He underlined a mixture of limited supply, centralized management of tokens and low institutional demand as key roadblocks.

Ripple’s grip on XRP power supply

Unlike Bitcoin or Ethereum, XRP was pre-marine. At the launch, 100 billion tokens were created – none will never be struck again. Ripple Labs initially held 80% of the total offer and, in mid-2010, it still checked around 42%.

About 35% of this is locked in monthly entire accounts, while 7% remain in Ripple wallets.

Each month, Ripple releases up to 1 billion XRP, granting the disproportionate influence on the supply in circulation and, by extension, price dynamics.

This degree of control has fueled the debate on the question of whether XRP can really be called a decentralized active. Market movements no longer reflect organic demand and supply, warned Cava.

“One hand can perfectly determine the XRP prices management-and I don’t like it,” he said. “I do not speak as a technical analyst, but as a market participant.”

Institutional demand remains elusive

Despite being designed for fast and low -cost cross -border payments – a clear utility for banks and institutions – XRP has not seen the type of institutional traction that benefited Bitcoin and Ethereum.

Adoption remains thin. The uncertainty of the market concerning the Ripple agreements with central banks, as well as sparse public information on live integrations, has created a doubt. This hesitation can discourage larger investors.

“Look at the XRP graphic. He jumped in November 2024, then just moved laterally. It is not a healthy trend,” noted Cava, comparing him to the momentum up of Bitcoin.

Transparency problems: the big private book vs public

Another concern is XRP’s double ledge architecture. The large XRP book manages retail and open transactions.

However, Ripple would also have developed a large separate and specifically authorized book for central banks exploring CBDC.

Although it uses technology similar to the public XRP public, this private version is not accessible to the public and operates independently.

This large private book is not publicly verifiable. While some speculate on a future fusion of the two systems, Ripple has not confirmed such plans. For many investors, this opacity is a red flag.

On the cryptographic markets where transparency and decentralization are essential for confidence, the architecture at camera of XRP stands out.

XRP price stuck until the structure changes

Technically, XRP continues to function as designed. But structurally, it faces challenges. A high concentration in tokens, a generalized lack of demand and a limited transparency of the network restrict its potential upwards.

Unless Ripple decentralizes the distribution of tokens and opens its private operations – or a new vague adoption emerges – XRP should remain trapped in a lateral trend.

The momentum of prices, as Cava points out, will not return without a broader demand and a change in the dynamics of governance.

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