Key Notes
- XRP's price shows bearish continuation signs with weak RSI and MACD on the 4H chart.
- On-chain usage is collapsing, but developer activity on XRPL is steadily increasing.
- Jeff Dorman calls XRP a “call option on potential,” driven more by hype than fundamentals.
On the Empire podcast, Arca CIO Jeff Dorman labeled XRP as “insanely overvalued,” noting its lack of concrete financial or utility value.
According to Dorman, XRP’s current valuation, hovering around a $122 billion market cap , is primarily built on social value: community loyalty and narrative inertia.
He compared it to GameStop, stating both assets reflect a “fake it till you make it” strategy, where hype leads the charge before real utility catches up.
Yet, Dorman acknowledged that this social value could someday be monetized, just as GameStop used its meme momentum to raise capital and diversify into crypto.
Ripple’s strategic moves like acquiring Hidden Road may indicate that it’s attempting to convert this social capital into actual use-case value.
Technical Analysis: Bearish Signals Dominate
XRP trades at $2.09, down over 8% in the last week, and showing signs of fatigue both technically and fundamentally after losing the crucial 20-day Exponential Moving Average (EMA) at $2.16.
On the 4-hour chart, XRP is showing strong signs of bearish momentum. The MACD (12, 26) has dipped below the signal line and remains in negative territory, suggesting continued downward pressure.
There’s no bullish crossover in sight, and the histogram shows increasing red bars, further confirming the strength of the current downtrend.
XRP Daily Chart | Source: TradingView
Meanwhile, the RSI (14) is hovering near 33.59, just above the oversold threshold of 30. This indicates that while XRP is nearing oversold conditions, it is not yet at a technical rebound level. The lack of strong bullish divergence suggests caution for bottom buyers.
The price has also broken below key Fibonacci retracement levels drawn from the recent swing high at $2.25 to the swing low at $2.12.
It’s now approaching the 1.618 extension at $2.03, and could fall further toward the 2.618 level at $1.90 and even $1.77 (3.618) if selling continues. This zone between $1.90 and $1.70 may serve as a critical support zone.
Unless bulls step in quickly and drive price above $2.20 resistance, the structure remains tilted in favor of the bears.
Fundamentals: Development Up, Usage Down
According to on-chain data from Santiment , daily active addresses on the XRP Ledger have dropped to around 40,000, the lowest since November 2024. This is a massive pullback from the March peak of over 600,000.
Moreover, large-value transactions ($100K+) are also declining, signaling a broader loss of high-value engagement.
On the other hand, development activity has risen 196% over the past 30 days, indicating that technical teams are actively building for the ecosystem’s future.
nextDisclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
