XRP Slammed as Overvalued, Faces Sharp Bearish Pressure
Arca Chief Investment Officer Jeff Dorman sparked debate across the crypto sphere by calling XRP “insanely overvalued,” comparing it to meme stock GameStop and questioning the token’s tangible financial and utility value.
According to Dorman, XRP’s staggering market cap, recently hovering around $122 billion, is upheld not by fundamentals, but by what he calls “social value.” People strongly support XRP because they believe in its ongoing success story. According to Dorman, the XRP success strategy parallelized GameStop’s power of hype before transitioning to actual crypto investments.
XRP Weakens Despite Ripple’s Strategic Shift
Despite recognizing this, Dorman highlights that social value holds little real worth. “If Ripple can convert that brand loyalty into functional use cases,” he noted, “there’s a pathway to real value just like GameStop managed to do with its meme stock status.”
Ripple’s purchase of Hidden Road shows evidence that they might change their direction. Data from both fundamental and technical XRP analyses shows a difficult path ahead. Currently trading at $2.08, down over 8% in the past week, XRP has broken below its 20-day Exponential Moving Average at $2.16, a sign of mounting weakness.
The MACD trend in 4-hour periods crossed below its signal line and remains below zero, enhancing the bearish market direction. The histograms show continuous strong red bars and no approaching market turnaround.
XRP Faces Bearish Outlook Amid Shrinking Activity
The Relative Strength Index at 33.59 shows no bullish divergence that indicates an upcoming recovery. The Fibonacci retracement tool forecasts a price decline, with XRP headed toward $2.03 at the 1.618 level. After more selling pressure builds up, XRP could slide to support levels at $1.90 or $1.77, depending on how much selling continues.
Santiment’s on-chain data supports the negative expected outcome. The number of active users on the XRP Ledger shrank to its November 2024 level of 40,000 daily addresses in the present month. Large amount transfers above $100,000 show decreasing involvement of institutional and whale investors.
However, there is a silver lining: development projects on the XRP Ledger have grown by 196% during the last month. Throughout its history, XRP has displayed a robust community engagement plus strong storytelling, yet its volatile market performance and dubious utility now came together to create difficult times ahead.
The XRP community stands strong with its cherished narratives, but the asset feels pressure from market events and doubts about its practical usefulness. Whether Ripple brings together social connection and utility will decide if XRP continues in the crypto market.
