Cryptocurrency enthusiast Micah has identified a noteworthy price disparity between Ripple (XRP) on two prominent exchanges, Coinbase and Uphold. This price difference has generated interest among traders who see a potential arbitrage opportunity.
Price Divergence on Coinbase and Uphold
Coinbase displays an XRP price of $0.52, reflecting a minor decrease of 0.30% in the last 24 hours. The price fluctuated throughout the day, reaching a high of $0.52 and a low of $0.51.
Read Also: Ripple Makes Another Unusual 800 Million XRP Escrow Lock Back: Details
In contrast, Uphold presents a lower XRP price of $0.5077, signifying a more substantial decline of 2.03% over the same period. The highest recorded price on Uphold was $0.52004, with a low of $0.50546. This price difference has prompted market experts to delve deeper into the underlying factors.
Understanding the Price Gap
Crypto researcher Darren shed light on the potential reasons behind the price discrepancy. Darren explained that Uphold integrates data from various exchanges, resulting in a broader price feed. This approach allows Uphold to arrive at an average price of $0.5077 for XRP, potentially reflecting the overall market more accurately.
Conversely, Coinbase relies primarily on its internal exchange and user base for pricing, leading to a less diversified pricing model. This limited data pool can cause the price on Coinbase to be more susceptible to specific trading activities and volume within its ecosystem.
Accessibility and Regulatory Influences
Darren further highlighted that the observed premium on Coinbase might be partially attributed to limitations on XRP accessibility for U.S. citizens, impacting supply and demand dynamics.
For instance, in 2021, following the SEC’s lawsuit against Ripple alleging XRP to be an unregistered security, Coinbase halted XRP trading in New York. Although a court decision later clarified XRP’s status as a non-security, Coinbase and other U.S. exchanges, only resumed XRP trading recently. However, New York residents continue to face limitations due to stricter regulations, affecting XRP’s supply-and-demand balance on the platform.
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Read Also: Uphold Reveals it Never Delisted XRP, Now Holds about 2.1 Billion XRP in Its Reserves: Details
XRP’s Future: Analyst Predictions
Despite the current price of $0.52, several analysts remain optimistic about XRP’s future. According to Times Tabloid, a market analyst identified a bullish signal for XRP. He thereby predicted a whopping rise to $200, representing a 360-fold increase.
Other analysts have provided more conservative price targets. EGRAG anticipates an impulsive wave, potentially propelling the price to $66, while CryptoBull projects a significant rise to $154.
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